On August 3, Luo Bingsheng, vice president of the China Iron and Steel Association (CISA) stated that progress is expected in the merger process between Chinese steelmakers Angang Steel Company and Benxi Iron and Steel (Group) Co. by the end of the current year.
Political intervention has been the biggest obstacle facing the merger of Angang Steel and Benxi Iron and Steel, according to Mr. Luo. Due to different supervision authorities in different areas, the merger cannot be fully realized at present, he added.
The CISA official commented, "The party in charge of Angang Steel is the State-owned Assets Supervision and Administration Commission of the State Council, a body of the central government, while Benxi Iron and Steel is supervised by the Liaoning provincial government. The different administrative systems have blocked the merger process. However, the situation may be improved by the end of 2010."