Carlyle Group, a private equity firm from the United States, has
agreed to reduce its stake in Xugong Group, a leading Chinese
construction machinery manufacturer, from 85 percent to 50
percent.
The new deal is still awaiting for approval by Chinese
authorities.
The new deal was signed on Monday, according an announcement
Wednesday by Xugong's Shenzhen-listed unit, the Xugong
Technology.
The Carlyle deal was submitted to the Ministry of Commerce for
approval in December last year but was turned down amid rising
concerns that foreign control over key Chinese firms might threat
the country's economic security.
(Xinhua News Agency October 18, 2006)