Chinese steel giant Shougang Group has inked an agreement with another domestic steel giant Baowu Group to transfer a 15 percent stake in Beijing-based steel subsidiary Shougang Co., Ltd. to the latter party for free, as announced by Shougang Co.
After the transfer, Shougang Group will hold a 64.38 percent stake in Shougang Co., while Baowu Group will hold a 15 percent stake in the company. Approval for the transfer is needed from the State-owned Assets Supervision and Administration Commission of Beijing’s municipal government.
As previously reported by SteelOrbis, on November 6 Shougang Group and Baowu Group signed an agreement according to which the two parties will promote high-quality development of the steel industry through cooperation between the two producers.