Chinese state-run Yunnan Metallurgical Group Co. Ltd. is merging with an Aluminum Corp. of China-controlled joint venture, Reuters reported.
Aluminum Corp of China, or Chinalco, is the controlling shareholder of Aluminum Corp. of China Ltd., or Chalco.
Yunnan Metallurgical Group owns a 42.57% stake in the Yunnan Aluminium Co. Ltd. smelter as well as several metal firms in China's southwestern Yunnan province. The transaction would also give Chinalco exposure to its first lead and zinc assets as Yunnan Metallurgical Group controls Yunnan Chihong Zinc and Germanium Co. Ltd.
The joint venture is owned 58% by Chinalco, with the remaining 42% held by the Yunnan government, according to a May 28 report. Chalco valued the strategic cooperation at over 100 billion Chinese yuan on its website, the report added.
As part of the arrangement, Xu Bo, a vice president at Chalco, was appointed as chairman and secretary of Yunnan Metallurgical Group, Reuters wrote in a separate June 1 report. It was unclear if Xu would continue in his role at Chalco.
Meanwhile, Xu's predecessor at Yunnan Metallurgical Group, Tian Yong, will be transferred to Chalco. The company did not provide further details on Tian's new role.
Chalco said May 28 that Chinalco struck a deal to expand its strategic cooperation with Yunnan province. The specific ways of cooperation have yet to be finally determined.
As of May 28, US$1 was equivalent to 6.40 Chinese yuan.
