China steel giant acquires Jiangxi’s biggest industry peer

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China steel giant acquires Jiangxi’s biggest industry peer

The world’s largest iron and steel company China Baowu Steel Group, a state-owned enterprise, has acquired a 51% stake in XinSteel, the biggest steelmaker in Jiangxi province.

This RMB4.26 billion (USD630 million) deal was advised by JunHe and Clifford Chance.

JunHe’s team was led by partner Shao Chunyang and supported by partners Zheng Ziwei and Yu Yun.

Clifford Chance acted as outbound antitrust counsel and its partner Bai Yong led the cross-border team, with support from Itır Çiftçi, a partner of Clifford Chance’s associate firm CIFTCI Attorney Partnership in Istanbul, advising on Turkish law.

XinSteel’s listing subsidiary Xinyu Iron and Steel is a major steel producer with a crude steel output of 9.38 million tons in 2020.

The holding institution of Xinyu has changed from a provincial authority to a department under the State Council since completing the transaction.

Baowu was established in 2016 by the reorganisation of the former Baosteel Group and Wuhan Iron and Steel Group.

The reorganised company has acquired Magang Group, Taiyuan Iron and Steel Group, Chongqing Iron and Steel, Kunming Iron and Steel and Tibet Mineral Development. Baowu was authorised to manage Sinosteel Group and announced a merger with Shandong Iron and Steel in July last year.

According to the World Steel Association, Baowu’s crude steel output had reached 115 million tons in 2020, ranking first in the world.