The pace of integration of the steel industry has accelerated again. On October 11, China Steel International Engineering Technology Co., Ltd. (hereinafter referred to as " China Steel International ") disclosed an announcement stating that the controlling shareholder China Steel Group plans to be entrusted by China Baowu Steel Group Co., Ltd. (hereinafter referred to as "China Baowu").
According to the announcement, on October 11, 2020, China Steel International received a notice from the controlling shareholder China Steel Group Co., Ltd. (hereinafter referred to as "China Steel Group") that it was learned that China Steel Group plans to be custodian by China Baowu, and the specific custodian plan is still under negotiation.
At present, China Steel Group directly holds Zhonggang International 235845969 shares, and its subsidiaries China Sinosteel Co., Ltd. and China Steel Asset Management Co., Ltd. hold Zhonggang International 406262246 shares and 44016017 shares respectively. China Steel Group directly and indirectly holds a total of 686124232 shares of the company, accounting for 54.60% of the total number of shares of Zhonggang International , and is the controlling shareholder of the company. The State-owned Assets Supervision and Administration Commission of the State Council is the actual controller of the company. As of now, neither the company's controlling shareholder nor actual controller has changed.
announcement stated that the company's major asset restructuring matters will not be involved in the company's prior custody projects, nor will it have an impact on the company's normal production and operation activities.
China Steel Group is a central enterprise supervised by the State-owned Assets Supervision and Administration Commission of the State Council. It is mainly engaged in the development and processing of metallurgical mineral resources, metallurgical raw materials, product trade and logistics, and related engineering and technical services and equipment manufacturing. It is a large multinational enterprise group that provides resources, science and technology and equipment integration services for the metallurgical industry, integrating mineral resources, engineering equipment, science and technology new materials, trade and logistics, and investment services.
China Baowu was jointly reorganized by the former Baosteel Group Co., Ltd. and Wuhan Steel (Group) Company, and was unveiled on December 1, 2016. On September 19, 2019, China Baowu carried out a joint restructuring of Magang Group . At present, China Baowu has a registered capital of 52.79 billion yuan and an asset scale of over 860 billion yuan. It is a pilot enterprise of a state-owned capital investment company. In 2019, China Baowu achieved steel production of 95.46 million tons, total operating income of 552.2 billion yuan, and total profit of 34.53 billion yuan. It ranked first in the world in terms of operating scale and profitability, ranking 111th in the Fortune Global 500.
It is worth mentioning that recently, Taigang Group and Chongqing Steel have also become members of the Baowu Group. Taigang Stainless recently announced that 51% of the equity of the controlling shareholder Taiyuan Steel (Group) Co., Ltd. (hereinafter referred to as "Taigang Group") has been transferred from Shanxi State-owned Assets Operation Company to China Baowu free of charge. Chongqing Steel also announced that China Baowu indirectly controlled 23.51% of the company's equity and became the new actual controller by acquiring 40% of the company's direct controlling shareholder Changshou Steel and signing a joint action agreement with Chongqing Zhanxin Fund, which holds 25% of the company's equity, thereby indirectly controlling 23.51% of the company's equity and becoming the new actual controller.
Image source: Screenshot of announcement of listed companies, Beiwan New Vision
