Blackstone buys 20% of China chem. company

Beijing -- Blackstone Group LP has agreed to pay $600 million for 20 percent of China's state-owned China National BlueStar (Group) Corp., the companies said Monday.

The New York private-equity firm will buy the stake from state-owned China National Chemical Corp., the companies said in a joint statement. China National Chemical, better known as ChemChina, will retain 80 percent of BlueStar.

Blackstone's minority stake in BlueStar will limit its control over the investment, which is subject to Chinese regulatory approval.

Under the deal, Blackstone will nominate former Hong Kong finance secretary Antony Leung, now Blackstone's chairman for Greater China, and Ben Jenkins, Blackstone's head of private equity for Asia Pacific, to hold seats on BlueStar's board, Xinhua Financial Network reported.

BlueStar produces chemicals used in heavy industry and for high technology, its Web site said. Its three listed units -- Blue Star Cleaner, Shenyang Chemical Industry Co. and Blue Star New Chemical Material Co. -- have annual sales of more than $4 billion.

Blackstone advised China Development Bank in July on investing as much as $13.52 billion for a stake in Britain's Barclays PLC, bringing the Chinese state lender into the global battle for Dutch bank ABN Amro Holding NV.

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Copyright 2007 by United Press International.