December 03, 2008

Anben to acquire Lingyuan Steel Soon

It is reported that Anben Steel Group is in the process of purchasing Lingyuan Steel, hopefully to make it the first deal after its real combination.

As per report Anben Group had wished to acquire Lingyuan Steel as early as starting its merged company. This is echoed by an official who said talks with Lingyuan Steel began in 2005, when Angang and Bengang were also under negotiation of combination.

During the CPPCC and NPC sessions, Mr Zhang Xiaogang GM of Angang's noted Anben Group is likely to achieve substantial re-composition within this year while Mr Yu Tianchen chairman of Bengang's also said definitely the re composition plan should be released after the sessions. Once this completes, acquisition of Lingyuan Steel will be picked up.

Lingyuan Iron and Steel Company is one of a small number of domestic enterprises which have owned mines, can guarantee 30% iron ore materials supply for iron and steel companies. It is the reason that Anben Group desires to purchase Lingyuan Steel. The domestic experts believe that after the acquisition, Anben Group will have steady upstream channels, and it can even ignore the unfavorable factor that international iron ore price rise. In fact, the number of steel enterprises that want to perfect the steel industrial chain is majority. China Baosteel, WISCO etc gained overseas ore mining rights like that modes.