Anyang Iron & Steel, the largest steel mill in Henan province, announced on Sunday that it had bought a stake in three local private iron and steel companies.

In the restructuring deal, Anyang Iron & Steel will acquire a 10 percent stake in each company. In exchange, Anyang will provide management expertise, technology, informational exchange and purchasing and marketing channels to each of its new partners.

By the end of last year, the total steel production capacity of the three private companies has reached more than 5 million tons, and profits totaled more than 166 million yuan ($25.6 million).

According to company officials, the restructuring is necessary to facilitate Anyang’s long-term growth and help local steel companies avoid hostile takeovers by other firms.

"The company is considering further restructuring plans," Wang Ziliang, chairman of Anyang Iron & Steel, told China Business News.

河南省最大钢铁企业安阳钢铁集团有限公司上周日宣布，该集团联合重组了3家当地的民营钢铁企业

安钢以商誉、管理等资源出资到3家民营钢铁企业，建立股权投资关系，安钢将分别持有每个新公司10%的股份。

到去年年底，安钢此次重组的3家公司的钢产能合计达到500多万吨、利润达1.66亿元。

安钢对省内企业的大规模联合重组，一方面是自身做大的需要，另一方面就是摆脱被收购兼并的命运。

安钢董事长王子亮昨天接受《第一财经日报》采访时表示，"接下来，还会考虑进一步重组。"