Jiangxi Province-based State-owned Capital Operation Holding Group Co., Ltd has inked an agreement with major Chinese steelmaker Baowu Group on October 16, according to which the former will transfer 51 percent of equity in Jiangxi Province-based Chinese steelmaker Xinyu Iron & Steel Co., Ltd (Xinyu Steel) to the latter group.
According to the special audit results of net assets, the value of the free transfer amounts to RMB 4.267 billion ($0.6 billion).
After the transfer, China Baowu Group will hold 51 percent of equity in Xinyu Steel and become its controlling shareholder, while Capital Operation Holding will hold the remaining 49 percent.
Xinsteel Group is located in Xinyu city in Jiangxi Province and has an annual crude steel capacity of 10 million mt.
China Baowu Steel announced that it will target a crude steel output of 200 million mt by the end of 2025 via the acquisition of more steel enterprises.