Private equity firm in talks with plastics producer
5 April 2007
Blackstone Group, the US private equity firm, is negotiating with Guofeng, China's biggest plastic products manufacturer, over a possible takeover, Reuters reported. Sources familiar with the situation said Wednesday that talks began several months ago, although no deal has been reached yet. Guofeng Plastic, the Shenzhen-listed arm of the Anhui-based company, confirmed in a statement to the stock exchange that its parent company was in discussions with Blackstone over potential cooperation. It said strategic investors were required to allow the company to expand and that, so far, it hadn't spoken to any parties apart from Blackstone. Should an agreement be reached, it would be Blackstone's first major investment in China. Rivals such as Carlyle Group and Bear Stearns have already spent billions of dollars in the country.