BIZCHINA / Overseas Investment
Goldman Sachs acquisition of Shineway approved by SASAC
(CRIENGLISH.com)
Updated: 2006-08-17 14:26
Goldman Sach's private equity fund has won regulatory approval from the
State-owned Assets Supervision and Administration Commission (SASAC) for
its US$252 million acquisition of meat processor Shineway Group, the
South China Morning Post reported, citing sources.
SASAC approved the equity transfer deal, which effectively transforms
Shineway into a foreign-owned enterprise, according to the Henan
Shuanghui Investment & Development Co.
Shineway management owns 25 percent of the Shanghai-listed Henan
Shuanghui, the Hong Kong newspaper said.
The deal requires a further approval fromthe Ministry of Commerce (MOC)
before going through.
Some members of the Ministry of Commerce whose approval is required to
close the deal oppose the acquisition, the report said, adding that such
deals have drawn increasing criticism from opponents of the acquisition
of leading Chinese companies by foreign interests.
Goldman Sachs fund Rotary Vortex outbid JP Morgan's private equity arm
CCMP in April for a majority stake in Shineway, the largest
meat-processor on the mainland. CDH China Growth Capital Fund is a
minority partner in Rotary Vortex, the report said.
Recently, the ministry published new rules that are expected to make it
harder for foreign companies to acquire mainland assets, the newspaper
added.
The Carlyle Group's US$375 million proposed takeover of Xugong
Construction Machinery, China's biggest maker of construction machines,
stalled earlier this year amid concerns that an industry leader was about
to fall into the hands of foreign investors.
(For more biz stories, please visit Industry Updates)
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