China's top steelmaker Baowu in talks to absorb No. 7 Shandong

String of acquisitions prompted by Beijing's push to consolidate industry

Workers at a plant run by Shandong Iron & Steel Group, the seventh-largest steelmaker in China. © Reuters

NAOKI MATSUDA, Nikkei staff writer

July 16, 2021 02:18 JST

SHANGHAI -- China Baowu Steel Group, the world's largest steel producer, has entered discussions to absorb China's seventh-ranked peer Shandong Iron and Steel Group.

Shandong's core subsidiary Shandong Iron and Steel Co. announced Wednesday that the parent company sent a notice that it has started negotiations toward a "strategic reorganization" with Baowu.