Baosteel and Wuhan Steel almost simultaneously announced that each received a controlling shareholder notice, Wuhan Iron and Steel Group and Baosteel Group is planning a restructuring strategy, since strategic restructuring plan has not been determined, subject to the approval of the relevant authorities after finalized. The matter may involve the company's major asset restructuring. Given the significant uncertainties in the matter. in order to ensure fair information disclosure, to maintain the interests of investors, to avoid abnormal stock price volatility, stock suspension from today.

The industry said the reason for merging the two group companies concern, mainly because the two companies form a huge amount of Baosteel Group's steel production after the River Steel Group, ranked second; Wuhan Iron and Steel is ranked sixth after the merger will exceed the Hebei Iron and steel to become China's largest, the world's second largest steel company, "China Kobelco" almost certain.

Zhuo record information according to statistics, in 2015, Baosteel Group production was 34.938 million tons of crude steel, Wuhan Iron and Steel production was 25.776 million tons, the two together after production was 60.714 million tons. After the merger the two companies have 61 blast furnace, converter furnace 62, involving more than 80 million tons of production capacity, hot pursuit of the world's top-ranked Arcelor Mittal, which in 2015 crude steel production was 97.136 million tons.