Hong Kong-listed Kaiyuan Holdings Limited has agreed to purchase 30 percent of shares each of Rizhao Sections Company and Rizhao Iron and Steel Company as well as 25 percent of shares of Rizhao Steel Rolling Company for a total investment of HK$5.2 billion. When the deal completed, Du Shuanghua, the owner of Shandong-based Rizhao Steel, will become the biggest shareholder of Kaiyuan Holdings. The deal, which has to be approved by the Hong Kong Exchanges and Clearing Limited, added resistance to Shandong Steel’s efforts in consolidating with Rizhao Steel this year. Rizhao Steel plans to build a 20 million t/y premium steel base in coastal area at the expense of axing half of existing capacity.