MIIT mulling rules on M&A of steel enterprises

June 16 MetalBiz--Chinese Ministry of Industry and Information Technology (MIIT) is mulling rules on Merger and Acquisition (M&A) of steel enterprises in order to guide and regulate their M&A acts, said Yang Xueshan, vice minister of MIIT on June 15.

 

Meanwhile, Yang stressed the importance of M&A to optimize the steel industry's structure in the backdrop of steel capacity oversupply in the domestic market.

 

The aforesaid rules are expected to promote large steel groups' development and improve their competitiveness on the home and overseas markets, added Yang.

 

China has 500 crude steel producing companies now, with average annual capacity of less than one million tons. The top five's steel output makes up 28.5% of the country's total, compared with a weight of over 60% or even 70% for the top four steel enterprises in U.S., EU, and Japan.