IDD Daily Updates and Restructuring Alert Weekly Updates, our email alerts
Blackstone Commits Up To $600 Million in Chinese Co.
September 10, 2007
Blackstone Group confirmed on Monday that it was making an investment in China's National BlueStar Group Corp., announcing that it was making a commitment of up to $600 million in the specialty chemicals company.
The investment will give Blackstone a 20% stake in the specialty Chinese chemical producer, a subsidiary of Beijing-based China National Chemical Corp. As part of the deal, Blackstone China Chairman Antony Leung and Ben Jenkins, head of Blackstone's Asia Pacific private equity group and a former Celanese Corp. board member, will join the chemical company's board.
For New York-based Blackstone, the deal represents its first investment in the Middle Kingdom after selling a $3 billion minority interest to a Chinese government entity earlier this year, a deal that observers expected would Blackstone better access to investment opportunities involving state-owned companies in China. It also marks Blackstone's focus on backing chemical businesses like Nalco Co., a company that Blackstone has fully exited, and Celanese.
Ren Jianxin, chairman of China National, said Blackstone's experience in the global chemical industry, particularly its ownership of chemical concerns Celanese and Nalco would assist its Bluestar in its expansion.
The transaction, however, hasn't closed yet, since regulatory approval from Chinese authorities is still pending.
UBS served as financial advisor to China National, while Merrill Lynch was Blackstone's advisor.
For more information on related topics, visit the following:
