China to promote M&A in steel, auto and machineries
China has worked out a plan to prop up consolidation of companies in some important fields, including automobile, rare earth and machineries, the government said on Monday.
The State Council's official website, www.gov.cn, said in a statement that the government will encourage merges and acquisition in the automobile, cement, steel, machinery, rare earth and aluminum industries.
The government will remove rules that restrict cross-regional mergers and acquisitions, according to the statement.
Local governments may sign agreements on splitting revenue from companies formed through cross-regional mergers and acquisitions, according to the statement.
Meanwhile, the government will also encourage the entry of private capital into industries from which it isn't banned and also allow private capital to hold larger stakes in companies, the statement said.