Exclusive: Shagang Still Wants to Buy Nangang Iron & Steel From Fosun

Jiangsu Shagang Group Co. Ltd. asked Fosun International Ltd. to honor their original deal to acquire Fosun’s steelmaking assets after a rival bidder preempted the deal, people close to Shagang told Caixin.

Shagang, China’s largest privately owned steelmaker, signed a formal agreement last month to buy a 60% stake in Nanjing Nangang Iron & Steel United Co. Ltd. for 13.58 billion yuan ($1.97 billion) from Fosun. But Nangang’s other parent company, Nanjing Steel Group, has a preemptive right to buy the shares before the opportunity is offered to others.