Xinjiang Tianshan Cement Co Ltd is in talks with China National Building Material Co Ltd (CNBM), about the acquisition of six of CNBM's cement-making subsidiaries, according to a filing to the Shenzhen Stock Exchange.
To complete the deal, Tianshan suspended trading of its shares on the Shenzhen Stock Exchange Monday for a period of no more than 10 days.
CNBM with a cement capacity of more than 500Mta has been the largest indirect shareholder of Xinjiang Tianshan Cement Co since 2018, when it acquired a a 45.87 per cent stake in the company.
The consolidation of Tianshan and CNBM's cement-making branches comes as CNBM works to reduce single-sector business competition, following a pledge made in late 2017, reports Caixin Global.
Apart from Tianshan, China National Materials also owns Ningxia Building Materials Group Co Ltd and Gansu Qilianshan Cement Group Co Ltd, which are also listed companies.
