Ansteel Merger Plan Moves Ahead

A merger plan between Panzhihua Steel & Vanadium and Anshan Iron and Steel Group (Ansteel) may have entered a critical stage as Panzhihua S&V decided to suspend share trading starting November 2.

The plan was approved by the State Council on May 21, 2010, followed by the creation in July of Angang Group Company, a joint venture between Panzhihua Iron and Steel Group Co., Ltd. and Ansteel, with a registered capital of 17.31 billion yuan. This group will serve as a platform to hatch what is claimed to be the world's second largest steel giant with capacity of 46 million tons per year.