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Goldman Sachs to buy 25 percent stake in Chinese cement maker Hongshi Holding

Goldman Sachs to buy 25 percent stake in Chinese cement maker Hongshi Holding

Goldman Sachs Group Inc. has signed a deal to buy a 25 percent stake in Chinese cement maker Hongshi Holding Group for 600 million yuan (US$79 million;euro58 million), the Chinese company said Friday.
A staffer in the marketing department at Hongshi's headquarters in Lanxi, a city in eastern China's Zhejiang province, confirmed the deal was signed Thursday. He would not give his name or any further details.
The acquisition, which requires government approval, is among a number of investments by Goldman Sachs in China's manufacturing sector.
Hongshi, a privately owned company set up in May 2002, has an annual cement production capacity of 16.5 million tons, the company said in a statement on its Web site.
Many Chinese companies are courting foreign strategic investors, aiming to build their cash base and improve management. Meanwhile, private equity firms and other foreign investors are targeting a wide range of Chinese industries, hoping to cash in on the market's double-digit growth.
Some of those deals have run into regulatory hurdles, and with the passage Thursday of an anti-monopoly law that requires acquisitions of companies in sensitive sectors to pass national security reviews, the obstacles are expected to multiply.
Earlier this week, Chinese home-appliance maker Guangdong Midea Electric Appliances Co. said the China Securities Regulatory Commission had rejected its plan to sell a stake to a unit of Goldman Sachs.
State media reports suggested the deal might go through later, however, if technical issues such as pricing could be resolved.
Goldman and its subsidiaries have been among the most active foreign strategic investors in mainland China. They have acquired or sought stakes in Fuyao Group Glass Industries Co., China's largest automotive-glass maker; tool maker Chengdu Yangzhiguang Industrial Co.; and meat processing firm Henan Shuanghui Investment & Development Co.


Updated : 2021-08-03 03:22 GMT+08:00