US Carlyle Group's purchase of Xugong Group halted by China regulator

[NVMojo]

this is sort of Dubai-like!

BEIJING (AFX) - China's Ministry of Commerce (MoC) has refused to approve US-based private equity firm Carlyle Group's planned purchase of a majority stake in Xugong Group Construction Machinery Co Ltd, the Guangzhou-based Southern Weekly reported.

Citing unidentified sources, the newspaper said that the ministry believed, 'a foreign investor should not hold a controlling stake (in Xugong Group)'.

In October last year, Carlyle Group signed an agreement to pay 375 mln usd for an 85 pct stake in Xugong Group, China's largest construction machinery manufacturer and distributor.

The deal caused strong objections over concerns that foreign investors' had excessive control of the equipment manufacturing sector.

more...

http://www.forbes.com/finance/feeds/afx/2006/03/23/afx2615844.html

[anotherdrew]

1. that doesn't even seem like much money anyway . n/t

[Nevernose]

2. 375 million sounds like a darned good deal!

For ownership of the largest construction company in the world's fastest growing nation? What gives? Maybe they put a B where they put an M? Are the prices in China really that low?

[AlecBGreen]

11. "construction machinery manufacturer"

they make backhoes and cranes, not buildings. Im over here in China and almost all of the heavy lifting equipment is foreign - Caterpillar and Hyundai being the most common. Now, if this was a CONSTRUCTION firm, you better believe the price would be in billions. This place is growing faster than you can possible imagine. :crazy:

[NVMojo]

3. imagine Bush stating this about the Dubai deal....

In response, the country's top planning agency -- the National Development and Reform Commission -- conducted a survey in the sector concluding that mergers and acquisitions had resulted in monopolization and a loss of home-grown innovation, according to the report.

[ConcernedCanuk]

4. Any country that keeps the Carlyle Gang out is showing some wisdom IMO

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[rodeodance]

8. you bet!

[LeftistGorilla]

9. Too true....

[Up2Late]

5. That's GREAT! Sounds like a little retribution for the UNICAL deal...

...the the U.S. blocked last year.

Pay-back's a bitch. :evilgrin:

[fasttense]

6. Smart move on the part of China. Too bad the US doesn't care

who owns it.

[TheBaldyMan]

7. sounds like the CHICOM are keeping their money

[Demeter]

10. No One Has Ever Accused the Chinese of Being Stupid

Ruthless, maybe, desperate, at times, but not stupid, unlike some country I live in. Except for their AIDS handling, and their sexuality hangups in general, but that's a practically universal human failing.

Nope, stupidity on the modern scale is truly an American invention, based on our long history of gullibity: after all, in America, there's one born every minute!

[donkeyotay]

12. Wish our government would protect us from Carlyle Group, et. al.

Remember the free market and how it was going to lift all boats? (Last I heard the CEO preznit was still blabbing about "an ownership society." Anyone else notice the trend in Carlyle and Blackstone and other private equity groups PRIVATIZING the assets of the free market. Anyone else think this is a trend? The public market will be left with the Google's and other puff stories while the hard assets go private. We beleeves in the market; that's why we're taking it private.