China’s CITIC Pacific Special Steel Group has announced to acquire 100% of London-based Stemcor Global Holdings, one of the world’s largest independent steel traders, through an indirect transaction completed by its wholly owned subsidiary, Kallanish notes.
The agreement was signed on 30 December following a meeting between the Guangzhou Airport Economic Zone Administrative Committee, Guangzhou Airport Industrial Investment Group, and senior executives of CITIC Pacific Special Steel.
Under the deal, Taifu Kechuang Special Steel (Shanghai), a wholly owned CITIC Pacific subsidiary, will acquire Prosperity Kingsfield Ltd at CNY 1.51 billion ($216 million) from Guangzhou Airport Industrial Investment Group, according to CITIC’s public release on Shenzhen Stock Exchange. Prosperity Kingsfield holds 100% of Stemcor Global Holdings.
The transaction will be settled entirely in cash, with 30% paid within five working days once the contract effective and the remaining 70% deposited into an escrow account at closing, to be released to the seller upon completion.
As of the announcement date, CITIC Pacific Special Steel’s main transactions with Prosperity Kingsfield and its subsidiaries in 2025 involved steel trading, totaling CNY 284.19m.
Once completed, the acquisition is expected to enhance CITIC Pacific Special Steel’s overseas market reach by leveraging Stemcor’s extensive global trading network and established local operations across Europe, the Americas, Asia-Pacific and the Middle East, the Chinese steelmaker says.
The company’s executives describe the transaction as a foundational step in building a fully integrated global operating model spanning resources, R&D, manufacturing, trading and downstream services. By integrating Stemcor’s mature trading and inventory management platform, CITIC Pacific aims to accelerate its overseas expansion while reducing reliance on traditional export channels, shifting from a product supplier to a global solutions provider in the steel industry.
According to Stemcor’s latest announcement, it sourced and delivered 2.8 million tonnes of steel and raw materials in 2024, bringing a total revenue of $1.8 billion with a gross profit of $78m in 2024.
