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Baosteel Co Ltd Alert:Baosteel announced a merger with Wuhan Steel

发布时间:2016-06-26    研究机构:德意志银行

M&A announced, real impact remains to be seen.

On June 26th, Baosteel and Wuhan steel announced a potential mergertransaction, promoted by the Chinese government; the trading of their stockswill be suspended beginning June 27th, 2016. While the details of the potentialmerger transaction have yet to be disclosed, we believe it will likely happen atthe parent company level rather than listed company level. Any potentialsynergy and industry impact (regarding both companies) remains to be seen.Considering Boasteel’s valuation, quality products, and management, wereiterate Buy.