Blackstone Group plans to buy a 20 to 40 percent stake in chemicals company China National BlueStar (Group) Corp for up to $500 million, marking its first major investment in the world’s fastest-growing major economy, Reuters reports.
Blackstone, in which China’s first state overseas investment agency recently bought a $3 billion stake, will pay between $400 million and $500 million for the stake in the Chinese company, a source familiar with the deal told Reuters on Thursday.
“The two sides are finalising the talks and an agreement will be signed within days,” says the source.
If successful, the deal would mark Blackstone’s first major investment in China where breakneck economic growth of 10 percent a year has driven up demand for everything from iron ores to plastics.