Hebei Iron & Steel Group plans to purchase an 80% stake in Shijiazhuang Iron & Steel Co Ltd for RMB 1.9 billion, said Yan Shengke, board chairman of the latter firm.

Wang Yifang, chairman of Hebei Iron & Steel Group, said that the company will soon release the results of the acquisition.

Hebei Iron & Steel Co Ltd, which was formerly known as Tangshan Iron & Steel Co Ltd and is the listed subsidiary of Hebei Iron & Steel Group, is considering a group listing, Wang added.

Hebei Iron & Steel Group, which is headquartered in Shijiazhuang, Hebei Province and is one of the world's top 500 enterprises, for several years has had an average annual output of 38 million tons of steel.

Last year, Shijiazhuang Iron & Steel sold 1.84 million tons of steel and 1.75 million tons of rolled steel for RMB 6.68 billion in total, and its profits amounted to RMB 220 million.