China's Baowu Steel absorbs Sinosteel in state-backed deal

World's biggest steelmaker acquires mining assets as part of purchase

Baowu Steel employees work at a hot rolling plant in Shanghai. The Chinese group is the world's largest producer of crude steel. © Reuters

SHUNSUKE TABETA, Nikkei staff writer

December 22, 2022 00:42 JST

BEIJING -- The world's largest steelmaker officially became bigger Wednesday after Chinese authorities approved China Baowu Steel Group's takeover of compatriot Sinosteel Group.

Baowu Steel absorbs Sinosteel's prowess in resource development and importing of raw materials. The addition of Sinosteel's mining assets will boost Baowu's global competitive advantage.