CITIC Special Steel's subsidiary wins bid for 40% equity of Shanghai Electric Group Steel Pipe
2021-01-20 17:27:41 [Print]
CITIC Pacific Special Steel Group Co., Ltd. announced on January 20 that its wholly-owned subsidiary CITIC Pacific Special Steel Economic and Trade Co., Ltd. received a notice from Shanghai United Assets and Equity Exchange on January 8 and successfully bid for 40% equity of Shanghai Electric Group Steel Pipe Co., Ltd. held by Shanghai Electric (Group) Corporation at a deal price of RMB400 million (USD61.85 million). It will sign a "Property Trading Contract" with Shanghai Electric soon after.
Shanghai Electric Group Steel Pipe Co., Ltd. is a holding company specially set up by Shanghai Electric for controlling Tianjin Pipe Corporation (Tianjin Pipe), and its core asset is 51.02% equity of Tianjin Pipe. Tianjin Pipe inherited the core assets related to the original 3.5 million tons of seamless steel pipe production capacity of Tianjin Pipe Group Co., Ltd., and has strong market competitiveness and influence in energy pipes, with a relatively high market share of products.
Through this acquisition, CITIC Special Steel will participate in the operation and management of Tianjin Pipe. Tianjin Pipe mainly produces medium and thin-walled seamless steel pipes, which can effectively complement CITIC Special Steel's existing medium and thick-walled seamless steel pipes. This is conducive to improving the variety structure and specification range of seamless steel pipe of both parties, jointly realizing the industrial cluster of seamless steel pipe production and marketing cooperation, and enhancing the overall scale and competitiveness of seamless steel pipe business of both parties.
Shanghai Electric Group Steel Pipe Co., Ltd. is a holding company specially set up by Shanghai Electric for controlling Tianjin Pipe Corporation (Tianjin Pipe), and its core asset is 51.02% equity of Tianjin Pipe. Tianjin Pipe inherited the core assets related to the original 3.5 million tons of seamless steel pipe production capacity of Tianjin Pipe Group Co., Ltd., and has strong market competitiveness and influence in energy pipes, with a relatively high market share of products.
Through this acquisition, CITIC Special Steel will participate in the operation and management of Tianjin Pipe. Tianjin Pipe mainly produces medium and thin-walled seamless steel pipes, which can effectively complement CITIC Special Steel's existing medium and thick-walled seamless steel pipes. This is conducive to improving the variety structure and specification range of seamless steel pipe of both parties, jointly realizing the industrial cluster of seamless steel pipe production and marketing cooperation, and enhancing the overall scale and competitiveness of seamless steel pipe business of both parties.
