On 30 December 2008, three Chinese steel companies — Tangshan Iron and Steel Co., Handan Iron and Steel Group and Chengde Xinxin Vanadium and Titanium Co. — agreed to merge, creating the biggest listed steel maker in China. The three Hebei-based companies were all listed companies under Hebei Iron and Steel Group. The new entity will be the only listed company of the group after the merger. Annual production of raw steel will be about 32 million tonnes, which will be more than Baosteel’s 30 million tonnes. Tangshan will merge with the two smaller firms through share swaps. One Handan share will be swapped for 0.775 Tangshan share and one Chengdu share for 1.089 Tangshang shares, according to the agreement. Handan and Chengde would cease to exist as separate legal entities and their assets, debts, businesses and staff would go to Tangshan.
