China approves Blackstone investment in BlueStar

0 Comments | AFP, January, 2008

BEIJING (AFP) — China said Thursday it had formally approved US private equity firm Blackstone Group's purchase of a 20-percent stake in chemical firm China National BlueStar.

Blackstone had announced the planned 600-million-dollar purchase in September as a major step forward in its strategy of expansion within China.

The approval was announced on Thursday by China's National Development and Reform Commission. No other details were given.

The deal comes after Blackstone announced in May last year it would sell eight percent of its shares worth three billion dollars to China Investment Corporation.

The corporation is the investment vehicle formed to invest a portion of China's huge foreign currency reserves, which stood at 1.455 trillion dollars in...