The State Assets Supervision and Administration Commission said
Tuesday the sale of Xugong, a leading Chinese construction
machinery manufacturer, to US private equity firm Carlyle Group is
still being studied.
The state asset watchdog said the deal would go through normal
examination and approval procedures once relevant departments have
had an opportunity to complete the study and conclude consultations
with interested parties.
In a new deal signed mid-October, Carlyle agreed to reduce its
stake to 50 percent, worth 1.8 billion yuan or roughly US$225
million.
Carlyle originally offered US$370 million for an 85 percent
stake in Xugong. The deal was submitted to the MOC for approval in
December last year, but was turned down amid fears that foreign
control of key Chinese firms could threaten the country's economic
security.
According to reports, Wang Min, chairman of the Xugong board, is
confident that the new deal will be approved.
(Xinhua News Agency November 15, 2006)