China’s Tsingshan Holding
Group is in advanced talks with state-controlled China Baowu Steel Group to
offload some of its stainless steel assets in Indonesia, reported Bloomberg News, citing
people familiar with the negotiations.
The sale, which includes
Tsingshan’s stainless steel and nickel pig iron manufacturing facilities, forms
part of the nickel giant’s strategic review.
Tsingshan is owned by
billionaire Xiang Guangda.
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One of the sources said that the
potential sale deal could be worth $3bn to $4bn and its terms could change.
Claimed to be world’s largest
crude steel producer, Baowu Steel is likely to purchase controlling stakes from
Tsingshan in some of the integrated production lines in Indonesia’s Morowali
Industrial Park in Central Sulawesi province, the sources added.
The two firms started the talks
in April 2022 and have already agreed on several key terms.
Discussions are currently
underway between Tsingshan and Baowu Steel over details, including operation
and sale, following the acquisition.
With the sale of steel assets,
Xiang intends to strengthen ties with one of China’s largest state-owned
commodity producers while retaining significant exposure to the steel business
via Tsingshan.