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A planned merger of China’s largest steelmaker and a domestic rival is set to create a group whose combined production exceeded that of the entire US steel industry last year, as Beijing pushes forward with efforts to consolidate its vast steel sector.

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According to a stock exchange filing on Sunday, China Baowu Steel Group will buy a majority stake in smaller producer Magang Steel to strengthen its “international competitiveness”. The value of the deal was not disclosed.

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The two companies had combined crude steel output last year of 87m tonnes, surpassing total US steel output of 86.6m tonnes, according to World Steel Association data.

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