(Yicai Global) Nov. 28 -- Shanghai Ganglian E-Commerce Holdings and Japanese steel trader Metal One will purchase a controlling stake in an Indian iron and steel market intelligence provider for USD6.56 million to extend their data analysis reach and hence their profitability in the sector.
Ganglian, one of China's largest information providers about the steel industry, will invest USD3.61 million and its Chiyoda-based partner will invest USD2.95 million to acquire 55 percent of Steelmint, the Shanghai-based company said in a statement yesterday.
The two firms will set up a joint venture which will become Steelmint's controlling shareholder, it added. Established in 2010, Steelmint has bases in Kolkata and Raipur. It provides price assessment, market intelligence, data analysis and research services on the global steel industry.
Metal One is controlled by the Mitsubishi, Japan's largest trading company. It distributes various types of steel to the global market and already has a business presence in India.
The share price of Ganglian E-Commerce [SHE:300226] rose 5.5 percent today to close at CNY79.37 (USD11.30). The benchmark Growth Enterprise Market Index was little changed.