Blackstone announced it would buy a 20% stake in chemical maker China National Bluestar for $600 million. Blackstone has been looking for its first major Chinese investment for some time and had been rumored to be negotiating for a stake in Bluestar (full story). Blackstone connections with the Chinese government have grown strong in the last year, as the Chinese government bought a stake in the firm in May, and Blackstone hired former Honk Kong financial secretary Antony Leung in January. Ben Jenkins, Blackstone's head of private equity group in Asia Pacific, noted that Blackstone made the deal "as a play on global growth in the chemical sector." He followed, "China in particular is a very important market for the chemical industry." Blackstone will nominate Leung and Jenkins to Bluestar's board. The company's stock finished Monday up 1.6% to $21.88.
Sources: Reuters, Wall Street Journal, RTT News
Commentary: Blackstone Interested in Wind Stake -- Reuters • Blackstone Seeks To Capitalize On Market Downturn • Blackstone Is A Dog
Stocks/ETFs to watch: BX. Competitors: GS. ETFs: XLF
ETFs: The Blackstone Group Q2 2007
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