It was disclosed that Baowu Steel Group, the largest crude steel producer in the world, might acquire controlling stakes in part of Tsingshan Holding Group’s integrated production lines in Morowali Industrial Park in Indonesia's Central Sulawesi province.

The negotiations began in April. Baowu is now having an advanced negotiation with Tsingshan, regarding the sale of assets, including stainless steel and nickel pig iron production facilities.

The value of this deal is likely to reach US$3 billion to 4 billion, but the terms are possible to be revised.

At present, both sides have reached a consensus on several key terms, and they are discussing details of operations and sales after the acquisition.