The shareholders of China's Laiwu Steel have rejected a plan to merge with Jinan Iron and Steel, a joint statement issued by the two companies said Tuesday.
The merger, estimated to be worth about 11.3 billion yuan ($1.71 billion), required the consent of two thirds of the members of both companies' boards. Jinan Steel approved the proposals, but Laiwu did not, the statement said.
The proposals were first put forward early last year, but both companies said in August that "changes in the macroeconomic environment" as well as difficulties in the steel sector itself had forced plans to be delayed.
The merger, estimated to be worth about 11.3 billion yuan ($1.71 billion), required the consent of two thirds of the members of both companies' boards. Jinan Steel approved the proposals, but Laiwu did not, the statement said.
The proposals were first put forward early last year, but both companies said in August that "changes in the macroeconomic environment" as well as difficulties in the steel sector itself had forced plans to be delayed.
