SHANGHAI: Two of China’s largest metals firms are set to merge, authorities said on Tuesday, as the country speeds up reforms of its lumbering state-owned companies.
China Minmetals Corp. (CMC), the biggest steel trading company in the country, will absorb China Metallurgical Group Corp, according to a statement from the State-owned Assets Supervision and Administration Commission (SASAC), which oversees the biggest state-owned enterprises.
CMC is China’s biggest raw material supplier for the metallurgical industry, with 600 million tons of iron ore and 250 million tons of coking coal in its reserves, according to its website.
China’s slowing economy has prompted the government to pledge reforms of state-owned conglomerates, with guideline released in August vowing to make them more globally competitive.
SASAC oversees more than 100 of the biggest state-owned companies. Reports said the government aims to merge them into around 40 national champions able to compete globally in a particular sector.