Shagang to be China's 2nd largest steelmaker via M&A

Shagang Group (Shagang), China's third-largest (and a hopeful runner-up) steel producer in terms of crude steel output, has advanced its merger and acquisition (M&A) strategy by taking 60% stake in Nanjing Iron & Steel United Co. (Nangang) from Chinese conglomerate Fosun International, according to the official statements released by the three companies on Wednesday night.

The deal will be sealed by up to Yuan 16 billion ($2.21 billion), and Fosun will no longer hold any stake in Nangang should the transaction is to be completed, according to the company announcements. Established in 1958, Nangang is based in East China's Jiangsu province and produced a total