China’s Baowu Steel says will consider other M&A opportunities

Photo: Reuters

China’s top steel maker Baowu Steel Group Co, formed in a mega merger last year, will consider other merger and acquisition opportunities amid a government drive to consolidate the market and cut overcapacity.

“We will track and do research on M&A opportunities and actively participate in these opportunities as market player,” President of Baowu Steel Ma Guoqiang said in an email reply to Reuters on Sunday.

China’s steel producers will not expand their production capacities in the future but will aim to improve efficiency of the sector and pursue higher quality products, he said.

Baowu is seen as a potential bidder for loss-making Chongqing Iron & Steel Co, according to a report from Chinese business magazine Caixin On Oct. 2.

The top producer with more than 70 million tonnes in annual production capacity said it looks to improve production at its Baoshan plant, Qingshan plant, Meishan plant and Zhanjiang plant, Ma said.

Baowu Steel was formed by a merger between Baoshan Iron and Steel Group (Baosteel) and its smaller rival Wuhan Iron and Steel, which was formally completed in December last year.

China’s state planner repeated its pledge to continue to reduce overcapacity in the debt-ridden steel sector and promote mergers among them at a news briefing on Saturday.

The government is driving a major campaign to rationalise its sprawling state sector from steel to energy as it looks to reduce overcapacity and increase state control of key markets.

Reuters

Singapore Reporter/s

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.