China's Ansteel eyes another 'merger' to expand business

Ansteel Iron & Steel Group (Ansteel), China's second largest steel producer behind Baowu Steel Group, is eyeing a 'merger' with Lingyuan Iron & Steel Co. (Lingsteel), a maker of mostly long steel products. Both Ansteel and Lingsteel operate from China's northeast province of Liaoning.

In a regulatory filing Wednesday, Shanghai-listed Lingsteel said that discussions had begun with Ansteel about a 'reorganization' that may lead to a change of ownership. Lingsteel, established in 1994, is currently majority owned by the city government of Chaoyang, in western Liaoning. Lingyuan's statement did not give details regarding why