Southern Steel Berhad has entered a heads of agreement to acquire Ann Joo Steel Berhad (AJSB) from Ann Joo Resources Berhad (AJRB). This cash deal targets non-current assets valued at RM1.005 billion, adjusted for current assets and total liabilities.

The transaction includes Ann Joo Integrated Steel Sdn Bhd, AJSB’s wholly-owned subsidiary, but it excludes AJSB's dormant property subsidiaries.

The acquisition is expected to expand operational scale and improve efficiencies through shared production and procurement resources. Southern Steel seeks cost synergies by integrating these similar upstream businesses.

As of the end of 2025, Southern Steel held RM57.9 million in cash against RM269.8 million in borrowings. The final sale is subject to shareholder approval and a definitive agreement.