NIPPON Steel Corp, the world's second-largest steel maker, may buy a stake in Baosteel Group Corp, China's largest steel maker, Nippon Steel President Akio Mimura told reporters in Tokyo. Baosteel Chairwoman Xie Qihua proposed having Nippon Steel buy into Baosteel to strengthen the companies' ties, and Nippon Steel will consider the purchase on the basis of profitability.

Mimura and Xie met on Friday. Baoshan Iron & Steel Co, Baosteel's publicly traded unit, said last week that conditions for share sales were improving, sparking speculation it may speed up plans to sell stock abroad. The company will welcome Nippon Steel and Posco as strategic investors after the sale goes ahead, spokeswoman Yu Hong said.