Two Top Chinese Steel Makers to Reorganize, May Merge

(Beijing) – Two of China's largest steel makers may be mulling a merger that would create the nation's biggest producer, as part of Beijing bigger plans to trim excess capacity that has pushed down global commodity prices in a range of industries from steel to coal.

State-owned Baosteel Group Corp. and Wuhan Iron and Steel (Group) Corp. (WISCO) are planning a "strategic restructuring" with each other, their listed companies said in separate filings to the Shanghai Stock Exchange on June 26. The concurrent release hinted the pair may be considering a merger of assets.