SteelOrbis Shanghai
On April 6, Bayi Steel announced that, as informed by its controlling share holder Xinjiang Bayi Iron & Steel Group Co. Ltd., the State-owned Assets Supervision and Administration Commission of the State Council on March 30 approved Baosteel's acquisition free of charge of part of the state-owned shares in Bayi Steel.
The shares in question are currently held by the Xinjiang State-owned Assets Supervision and Administration Commission. After the transfer of the shares, Baosteel will hold more than 30 percent of shares in Bayi Steel.
Having continued for around a year, this acquisition deal was finally settled due to the joint efforts of the Xinjiang autonomous government, Bayi Steel, and Baosteel.
It is the general view in the global steel industry that restructuring is required in Chinese steel. However, against the background of lofty steel price levels and high profits, there are still doubts as to whether the Chinese mills are consciously aiming at restructuring, or whether they will just suffer passively the world economic adjustment or regression in the future.