BEIJING (Reuters) - China’s Baosteel Group will have dual headquarters once the Shanghai-based state-owned steel maker takes over smaller rival Wuhan Steel, Shanghai-based newspaper The Paper said on Monday, citing unidentified sources.
Baosteel (600019.SS) will have headquarters both in its home town of Shanghai and in Wuhan in Hubei province, The Paper said.
There are few companies in China which have two corporate hubs, which suggests that although Baosteel is taking over Wuhan, the smaller company is retaining some influence over the structure of the takeover.
The deal, announced earlier this year, is the government’s biggest effort yet to consolidate its steel industry.
Baosteel and Wuhan were not immediately available to comment.
Reporting by Josephine Mason. Editing by Jane Merriman