A Case Study of the Merger by Share Swap and Absorption of Baosteel and WISCO Type

The steel and iron sector to capacity, the implementation of the supply-side structural change of the background. In order to further promote the structural modifying the design of the state-owned economy, enhance the current enterprise system, further the reform of state-owned businesses, speed up the overcapacity industry mergers and reorganization of the strong support for the supply-side structural reform's implementation. Baoshan Iron & Steel Company Limited (Baosteel) and WISCO is the name of Wuhan Iron & Steel Company Limited Company, as the top companies in China's iron and steel industry, have decided to implement a joint reorganization around the strategic objective of Soul, Body, Quality and Efficiency. The transaction program adopts the Baosteel shares to WISCO shares all shareholders to issue A shares for shares absorption merger of WISCO shares. At the same time, Baosteel shares, The controlling shareholders of Baosteel Group hold Wuhan Iron and Steel shares. Wuhan Iron and Steel Group will undergo a joint reorganization and Baosteel Group will become "China Baowu Iron and Steel Group Co. Ltd." Wuhan Iron and Steel Group shareholding will be gratuitously shifted to the China Baowu Group