Citic Unit to Acquire Controlling Stake in Steelmaker From Debt-Strapped Fosun

What’s new: A firm owned by state-owned heavyweight Citic Ltd. is set to acquire a controlling stake in a major Chinese steelmaker, edging out rival bidder Jiangsu Shagang Group Co. Ltd. that had signed a deal earlier last month to acquire the asset from owner Fosun International Ltd.

Following a last-minute bid, Citic unit Hubei Xinyegang Steel Co. Ltd. will pay 13.58 billion yuan ($2 billion) to acquire the 60% stake in Nanjing Nangang Iron & Steel United Co. Ltd. The money will be paid in phases, with the first installment set to be made on Tuesday, according to a Sunday announcement from Citic. A total of about 13 billion yuan will be paid by Citic within a week, sources familiar with the deal told Caixin.