With Chinese steelmaker Shandong Iron and Steel Group (Shangang) failing to complete its acquisition of Shangdong-based steel producer Rizhao Steel on November 30 as scheduled, Hong Kong-listed investment holding company Kaiyuan Holdings announced on December 1 that both of the companies in question now hope to complete the acquisition process by the end of Feburary 2011.
According to Kaiyuan Holdings, procedures relating to the acquisition are still in process. Kaiyuan Holdings holds 20 percent, 30 percent and 35 percent stakes in Rizhao Steel, Rizhao Steel Section and Rizhao Rolled Steel respectively, all of which are subsidiaries of Rizhao Group.
This is the second time the acquisition has been postponed, and there is still some uncertainty about whether the acquisition will actually be completed by the end of February 2011.