Possibility of Wuhan Steel four-way merger in China
According to some market news sources,
China's third largest steel producer, Wuhan Iron and Steel Group (
WISCO) is planning a four-way merger with Hangzhou Iron & Steel Co, Chongqing Iron and Hubei Echeng Iron & Steel in order to increase
production capacity and rival
China's current largest steelmaker
Baosteel.
However, according to other news sources,
WISCO officials have described these reports as extremely misleading, claiming the news had no basis and denied making any contact with the three domestic mills with regards to such a deal. In the long term, on the other hand,
WISCO officials are reportedly acknowledging the possibility of making acquisitions.
Therefore, we can see that there is talk in the press about possible
WISCO acquisitions; however, these talks may just prove to be speculative rumors. Developments in the coming weeks should reveal the true nature of the developments and expansion plans of
WISCO.