February 27 2017, Baoshan Iron and Steel Co., Ltd. (600019.SH, "Baosteel") and Wuhan Iron and Steel Co., Ltd. (600005.SH, "Wisco") implemented the merger, Baosteel successfully issuing the new shares to conduct the stock-to-stock swap and absorption merger with Wisco, and the new shares will be listed and circulated in the Shanghai Stock Exchange. The deal value is around 26 billion RMB yuan and becomes the largest MA deal in China's mental and steel industry.

The merger of Baosteel and Wisco will be the milestone of supply-side reform, providing referential experience for deepening all-round reform of state-owned enterprises. It is the megamerger of two large state-owned enterprise groups in China’s iron and steel industry. After this merger, the new listed company will be the most competitive iron and steel company worldwide. It will rank 3rd in both the production of crude steel and sales of automotive sheets among global listed companies. Also, it will rank 1st in sales of oriented silicon steel worldwide. Meanwhile, the new company will give full play to synergy, and realize the continuous improvements in all directions of scale, variety, cost, technology and service. This will establish a world-class listed company which represents the highest technology and strength level of China’s steel industry and owns independent intellectual property of steel knowledge. The merger would increase the international competitiveness and influences of China’s steel industry, and further improve international societies’ identification and acceptance of China’s steel industry’s technology level and production equipment. The new company is believed to lead strategic roadmap for China’s steel industry to participate “One Belt, One Road” programs and practice “go global” strategy.

CICC, as the independent financial adviser of Baosteel, has fully coordinated the deal with parallel execution of merger between listed companies and the restructuring of group companies. With extensive project experiences, CICC takes the lead in coordinating the implementation of the project, including the design and demonstration of the merger scheme, communication with the relevant ministries and government departments, disclosure of information, and communication with shareholders and the regulation approvals. CICC has enhanced the project efficiency, and earned highly recognitions of regulators, market media and investors on this milestone transaction.

CICC provides long-term services for China Baowu Steel Group. CICC has been offering continuous all-round investment banking services for China Baowu Steel Group and its subsidiaries since 2000, including IPO, refinancing, asset reorganization, corporate bonds, exchangeable bonds, etc. As the top investment bank with “Chinese Roots, International Reach”, CICC will continue making every effort to reach a new height, dedicating to the reform of Chinese state-owned enterprises.