Shougang signs merger deal with Tonghua Steel

Shougang has agreed to pay 2.5 billion yuan in cash to buy part of shares of Tonghua Iron and Steel Group from the State-owned Assets Supervision and Administration Commission of Jilin Province and to add capital to the group. This done, Shougang will hold up to 77.59 percent of shares in Tonghua Steel, Huarong Assets Management will take 10.33 percent and the Jilin government will hold 10 percent.