China's Anyang Steel to acquire Wuyang Mining in assets swap

Steel industry consolidation in Central China's Henan province is set to advance further, with Anyang Iron and Steel Co (Anyang Steel), the Shanghai-listed arm of the province's largest steelmaker Anyang Iron and Steel Group Co (Anyang Steel Group), announcing a deal with its parent to take a two-thirds share in a large (and profitable) iron ore miner while relinquishing control of two other steel-related firms currently losing money.

At first glance, the agreement announced on February 25 appears to be just financial housecleaning on the part of the Henan government. However, the deal aligns with the central government's encouragement of mergers and asset restructuring to increase steel industry concentration, control capacity expansion, and reduce the excessive competition