SteelOrbis Shanghai
Li Rongrong, director of the State Council's Assets Supervision and Administration Commission, has indicated that the Chinese government will continue to support Baosteel in its merger & acquisition moves both within and outside China.
Mr Li said the policy of strengthening big state-owned enterprises through M&As would definitely be continued, adding that Baosteel would be supported consistently as an M&A forerunner in the Chinese steel industry. "It has advantages in capital, technology, experience and talents, so it is without doubt the first choice in promoting industry regrouping", said Mr Li. However, he declined to disclose the next acquisition objective for Baosteel.
At the April 27 conference on the elimination of outdated steel industry capacity, Vice Premier Zen Peiyan stated that administrative measures would be necessary to advance M&As by Baosteel.