Valin Steel to acquire Yangchun New Steel
2019-09-10 15:33:13 [Print]
Valin Steel announced on late September 6 that the company's subsidiary Valin Xiangtan Iron and Steel planned to acquire 51% of Yangchun New Steel's shares with RMB1.655 billion (USD233 million) in cash to avoid the potential horizontal competition between Valin Group and Valin Steel.
According to the announcement, there is potential horizontal competition between the listed company Valin Steel and Valin Group, the controlling shareholder of Valin Steel, as the latter indirectly holds the control right of Yangchun New Steel. After completing the acquisition, Yangchun New Steel will become a subsidiary of Valin Xiangtan Iron and Steel, which will help Valin Steel further improve and enrich its products structure and optimize the market layout in economically developed coastal areas.
According to the announcement, there is potential horizontal competition between the listed company Valin Steel and Valin Group, the controlling shareholder of Valin Steel, as the latter indirectly holds the control right of Yangchun New Steel. After completing the acquisition, Yangchun New Steel will become a subsidiary of Valin Xiangtan Iron and Steel, which will help Valin Steel further improve and enrich its products structure and optimize the market layout in economically developed coastal areas.
