Two Chinese steel firms are considering a merger, in efforts to improve efficiency in China's bloated steel industry. The addition of Magang (Group) Holding, China's ninth largest steel producer, to China Baowu Steel Group, the country's biggest, would solidify it as the second largest steel company in the world by production, behind ArcelorMittal. But the deal is not without its critics.
Two Chinese steel firms are considering a merger, in efforts to improve efficiency in China's bloated steel industry. The addition of Magang (Group) Holding, China's ninth largest steel producer, to China Baowu Steel Group, the country's biggest, would solidify it as the second largest steel company in the world by production, behind ArcelorMittal. With the Chinese government plans to consolidate 60% of the country's steel capacity within 10 companies by 2020, the merger of two state-owned businesses would progress the industry towards the goal which remains far off, with the top 10 firms only holding 48.8% of capacity at present.