Securities Times reported that Hebei Iron and Steel Co Ltd the newly established conglomerate by Tangshan Iron and Steel and other two mills officially goes to public recently for trading.

Today, the long-simmered and the public most concerned consolidation of three listed members of Hebei Iron and Steel Group has come to the culmination. Tangshan Iron and Steel Co Ltd after acquiring Handan Iron and Steel Co Ltd and Chengde Xinxin Vanadium & Titanium Co Ltd evolves into the now Hebei Iron and Steel Co Ltd also the exclusively listed member of the Group specializing in steel, and turns up to be China second largest listed steel company after Baosteel Iron and Steel Co Ltd.

The new company capitalization has swelled from CNY 3.626 billion to CNY 6.877 billion an increase of about 90%, and its steel capacity has been pushed up 100% at 20mln tonnes.

Tangshan Iron and Steel Group act as the biggest shareholder of the new company, taking 26.95% of it and Handan Iron and Steel Group and Chengde Xinxin Group, the second and third holders own 11.99% and 6.28% respectively. And as the above three and Hebei Iron and Steel Mining Co Ltd are either direct or indirect wholly owned subsidiaries of Hebei Iron and Steel Group, the Group in practice serves as the indirect holding company of the newly listed by as much as 46.6% stake.

Mr Zhang Shibao China Merchant Securities steel analyst believed that the status of Hebei Iron and Steel Group in steel industry has been greatly upgraded thanks to the M&A. In addition, its product varieties will turn more various with a higher market share, covering rebar, wire rod, section, HR and CR sheet, medium plate and high strength steel products bearing Vanadium and the proportion of high end products will also be augmented.

According to Mr Zhengdong Citic Securities analyst, fierce competition has ever existed between Tangshan Steel and Handan Steel before consolidation, while a synergistic effect will from now on function between them in materials purchasing and downstream resources.

The market value of the new Hebei Iron and Steel Co Ltd is CNY 48.8 billion equivalently just CNY 2440 per tonnes in relation to its annual capacity of 20 million tonnes far less than the current averaged CNY 3570 per tonne in the market.

Once the next M&A plan to be accomplished, Hebei Iron and Steel is likely to edge out Baosteel as the largest steel mill in China.