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Wednesday, June 22, 2011

Baosteel said in talks to buy into Amsteel (BT)

Baosteel Group Corp, China’s second-biggest steelmaker, is in talks to buy a stake in a steel unit of Malaysia’s Lion Group for about US$1 billion, said two people with knowledge of the matter.

The size of the holding in Amsteel Mills Bhd to be sold has yet to be determined, one of the people said, declining to be identified because the negotiations are private.

Baosteel, supplier of half the sheets used by carmakers in China, will consider building plants in developing regions outside the country, Chairman Xu Lejiang said in March. The Chinese government is encouraging a shift of surplus steel production capacity overseas, Wuhan Iron & Steel Group General Manager Deng Qilin said the same month. -- Bloomberg

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