Apr. 18, 2006 (China Knowledge) Ð American private equity firm Carlyle Group has just received permission to acquire 85% of Xugong Construction Machinery Group Inc., China’s largest construction machinery company by revenue.

Carlyle Group will pay US$375 million for the purchase, following the authorization from ChinaÕs Ministry of Commerce (MOFCOM), to make it the biggest-ever acquisition by a foreign investor of a controlling stake in a leading State-owned enterprise (SOE).

The deal was announced some six months ago but the MOFCOM and the National Development and Reform Commission (NDRC) have been stalling the decision-making since January.

The sale of the company was kicked off by Xugong’s controlling shareholder, the Xuzhou municipal government, in early 2003.
chinaknowledge.com

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