Beijing-based Chinese steelmaker Shougang Co., Ltd has announced that it plans to acquire 49 percent equity in Beijing-based steel trading company Shougang Steel Trading Investment Co., which is also a subsidiary of Shougang Group, for RMB 5.859 billion ($0.92 billion). Meanwhile, Shougang also said it will raise funds of RMB 2.5 billion ($0.39 billion), which will be used for supplementing the working capital and debt repayments of the steel trading company and its subsidiaries and the construction of Hebei Province-based Jingtang Iron and Steel Union Co.
After the transaction, Shougang Steel Trading Investment Co. and Jingtang Iron and Steel Union Co. will become the wholly-owned subsidiaries of Shougang Co., which will help the company to further expand its high-quality steel assets and improve steel capacity.