China's Baotou Steel may sell 49% stake to Mittal

 The listed steelmaker will offer 3.03 billion new yuan-denominated shares to Baotou Iron & Steel Group at 2.3 yuan (29 US cents) each, the company said yesterday in a statement.

 The acquisition will mean that almost the entire group is publicly traded, making it easier for Baotou Steel Union to take over or merge with rivals. China, the world's biggest steelmaker, is encouraging consolidation in the industry to curb overcapacity and boost competitiveness as its economy expands.

 Prior to Mittal Steel's acquisition of Arcelor, the latter had signed an agreement with Chinese producer Laiwu Steel Group that will allow the European company to hold 38.41% stake in Laiwu Steel Corporation.

Mittal, last year, acquired a 36.67% share in Valin Steel Tube & Wire Company located in central China's Hunan Province.