Fangda Special Steel Technology will acquire all of Jiangxi Fangda Steel Group Enterprise Investment, a related-party holding company with vanadium-titanium steel and mining operations in south-west China, in a deal valued at about RMB3.53bn (about US$525m), according to a draft major asset purchase report published on the evening of 16 October.
Why Fangda Special Steel Technology is buying Jiangxi Fangda Steel Group Enterprise Investment
Fangda Special Steel said the acquisition would give it a stable supply of vanadium-titanium resources and vanadium-extraction technology, fill gaps in vanadium-bearing high-performance steel and vanadium deep-processing products, shift its product mix towards higher value-added goods and strengthen its position in south-west China by consolidating capacity there.
Deal terms and financing
As a limited partner in the Nanchang Huxu steel industry investment partnership, Fangda Special Steel will withdraw from the fund and receive its 99.2626% stake in the target as an in-kind distribution, priced at RMB3.5bn on the basis of its paid-in contribution, with no separate cash payment. It will pay RMB26m in cash for the remaining 0.7374%. An independent valuation put the target's equity at RMB3.69bn at 30 June 2026. The cash will come from the company's own or raised funds.
Regulatory approvals and timing
The board has approved the transaction, which is classified as a major asset restructuring and a related-party transaction because Nanchang Huxu is controlled by the company's indirect controlling shareholder. It still requires approval at a shareholders' meeting, at which related shareholders will abstain.
Market context
Fangda Special Steel first said in July 2026 that it was planning the restructuring. The target's operating subsidiaries include Sichuan Fangda Vanadium-Titanium Group and Sichuan Hengda Mining, and its products include rebar, wire rod and vanadium pentoxide.
