Baosteel and WISCO merger creates world's second-largest steelmaker
Baosteel Group and Wuhan Iron and Steel (Group) Corp (WISCO) will merge to become the world's No. 2 steelmaker, part of China's efforts to stem losses in a steel industry blighted by overcapacity. The merger is practical as both are central state-owned enterprises and their consolidation should achieve cost savings and efficiency gains. The merger could signal a new wave of industry consolidation, and fuel optimism about an end to issues such as overcapacity in China's steel industry.