China Baowu Steel to take control of stainless steelmaker TISCO

Baowu Group reached agreement with Shanxi State-owned Capital Operation Co Ltd on Friday to take a 51% stake in TISCO, a filing on the Shenzhen Stock Exchange by TISCO subsidiary Shanxi Taigang Stainless Steel said.

BEIJING: China Baowu Steel Group, the country’s top steelmaker by output, has agreed to take a controlling stake in Taiyuan Iron & Steel (Group) Co Ltd (TISCO) in the latest consolidation of the country’s mammoth steel sector.

Baowu Group reached agreement with Shanxi State-owned Capital Operation Co Ltd on Friday to take a 51% stake in TISCO, a filing on the Shenzhen Stock Exchange by TISCO subsidiary Shanxi Taigang Stainless Steel said.

The 51% stake is worth 14.5 billion yuan ($2.10 billion), based on an audit of TISCO’s net assets, although Baowu will not pay anything as the deal is a state-backed restructuring.