CHENGDU, Dec. 8 (NBD) -- The merger of Shanghai-based Baosteel Group (600019, SH) and Wuhan Iron and Steel Corporation (600005, SH) in central China’s Hubei Province was officially approved by China Securities Regulatory Commission, according to announcement late Wednesday. 

The two companies announced Tuesday that approval over the merger plan has been granted by Anti-monopoly Bureau, Ministry of Commerce. Overseas antitrust scrutiny is the only procedure that remains for them. 

Following the merger, China Baowu Steel Group Corporation Limited will play a driving role in facilitating integration of China’s steel market, and therefore ease the situation of industrial excess capacity in China.