Baosteel's takeover of Wuhan mill part of country's long-term plan to cut capacity

Shanghai Baosteel Group Corp has been given the green light to take over Wuhan Iron & Steel Group Corp, which will help create the world's second-largest steel smelter, according to a statement by a Baosteel subsidiary on Thursday.

The State-owned Assets Supervision and Administration Commission has approved the merger of the two groups, said regulatory filings made by Baosteel's listed units Bayi Iron & Steel Co and Shanghai Baosteel Packaging Co.