Chinese media reported on June 2 that Beijing-based Chinese steelmaker Shougang Group is to sign an agreement within the month of June to takeover Jilin-based Tonghua Iron & Steel Group (Tonggang).
Shougang Group admitted on the same day that it has been in takeover talks with Tonggang, but declined to confirm details regarding the timing of the agreement.
Shougang Group produced 17.3 million mt of crude steel in 2009, while Tonggang has an annual capacity of 6 milllion mt.