Caixin
Nov 02, 2022 03:46 PM
BUSINESS

In Depth: Will Fosun’s $2.2 Billion Steel Unit Sale Save the Conglomerate?

Shagang’s plant in East China’s Jiangsu province on July 21. Photo: VCG
Shagang’s plant in East China’s Jiangsu province on July 21. Photo: VCG

Fosun International Ltd.’s $2.2 billion sale of its 60% stake in Nanjing Nangang Iron & Steel United Co. Ltd. was either a desperation move — or a sign that the debt-laden conglomerate is about to turn a corner in its fight for survival.

“Fosun’s fortunes are going to change,” declared founder and chairman Guo Guangchang at an internal meeting after he struck the deal last month for Jiangsu Shagang Group to take over Nangang, according to a person close to senior management.

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