Du Shuanghua is a prominent figure in china’s steel industry. He was the chairman of Rizhao Steel from 2001 until its sale in 2010. According to Forbes, he became a billionaire in 2010 after selling his stake in Rhizao steel for $1.7 billion. A hostile takeover of Shandong Iron & Steel Group forced Du Shuanghua to sell his stake in Rizhao Steel.
Rhizao Steel was established in 2003 by Du Shuanghua. After Shandong Steels acquired the company, he was forced to surrender total control six years later. After he sold 33 percent investment in Rhizao Steel to Shandong Steels, gaining a total of Sixty-seven percent. Before the power shift, Rhizao Steels acquired a 15- year deal with Mount Gibson to receive 1.5 million tons of iron ore each year. Rhizao steels ended up breaching the contract costing Mount Gibson $114.
The original agreement in 2009 did not include the sale of Rhizao Steel in 2020. The initial goal of the agreement was a merger and reorganization of the two firms. Shandong kept 67% of the industry, while Du Shuanghua kept 33%. In the first part of the transfer, Du maintained control of Rhizao Steel as a Shandong Iron and Steel subsidiary as per the terms of the agreement.
Shandong Steels’ acquisition of Rhizao is considered one of the country’s most hostile takeovers. The takeover was met with some resistance from the Chinese government, considering it a move to privatize state-owned assets. Du Shuanghua affirmed that this would not increase prices or job losses. Rhizao Steels was eventually privatized after the takeover. Du previously had the most significant stake in Rhizao. By giving Kai Yuan Holdings 30 percent of the company’s stock, he had hoped to stave off acquisition. However, President Hu considered it too risky and canceled the transaction.
Apart from his commercial duties, Du is considered a philanthropist. His humanitarian endeavors have supported and helped youth causes in China and Asia. For more information, please visit at https://www.easyatm.com.tw/wiki/Du+Shuanghua