In the six months since they announced their intention to merge, northern Chinese steelmakers Jigang Group and Laiwu Iron and Steel Group have not published any notice for the holding of a shareholders meeting on the issue, as required by regulations, thus meaning that the initial restructuring plan of the companies may be aborted.
Insiders have commented that official government policy on the restructuring of the two steel producers remains unchanged, adding that new restructuring plans are being discussed and will be implemented when conditions permit.
In a statement issued on August 24, the two steelmakers said they are in negotiation with the authorities on issues relating to the proposed restructuring.