China's two major steelmakers, Ansteel and Ben Gang Group Corporation, inked a deal to kick off their merger and restructuring that will create the world's third-largest steelmaker.
According to the deal, the owner of Ben Gang -- Liaoning Province's State-owned Assets Supervision and Administration Commission -- will transfer a 51-percent controlling stake in the steelmaker to Ansteel, and Ben Gang will become a subsidiary of Ansteel.
Founded in 1916 and 1905 respectively, Ansteel and Ben Gang are both located in Northeast China's Liaoning province.
After the merger, Ansteel will have an annual production capacity of 63 million tonnes of crude steel, ranking third worldwide after China Baowu Steel Group Corporation Limited and Luxembourg-headquartered ArcelorMittal.
The merger will increase the consolidation of the steel industry, step up high-quality development of the industry, and forge a world-class steel firm, according to a statement released by Ansteel, or Angang Steel Co Ltd.
