Shenghe Resources Plans to Sell 51% Stakes in Four Rare Earth Separation Companies to State-Owned China Rare Earth Group for Up to $254 Million

Highlights

• Shenghe Resources announced plans to transfer controlling 51% stakes in four rare earth smelting and separation subsidiaries to China Rare Earth Group Industrial Development Co.
• The four businesses carry a combined preliminary valuation of RMB 3.25–3.55 billion ($457–500 million), with the 51% stakes valued at up to $255 million.
• The deal covers Leshan Shenghe Rare Earth, Quannan New Resources Rare Earth, Jiangyin Jiahua New Materials Resources, and Zibo Jiahua New Materials Resources.
• Shenghe would retain 49% in each company but lose majority control, shifting the subsidiaries off its consolidated financial statements to equity-method accounting.
• The consolidation raises questions for Western buyers about future supply allocations, coordinated pricing, and state-directed access to separated rare earth materials.