US buyout firm The Blackstone Group has made its first investment in China taking a 20 percent stake in China National Bluestar Corporation, a subsidiary of state owned China National Chemical Corporation for $600 million (€435 million).
Blackstone’s China head Anthony Leung and Ben Jenkins, a former director of German chemical company Celanese, will join the company’s board.
A source close to Blackstone said this is a strategic investment in China.
Blackstone has made several investments in the chemicals sector. It partially exited Celanese through an IPO in 2005 for $800 million and it bought water treatment company Ondeo Nalco 2003 for $4.2 billion as part of a consortium.
Blackstone has had an eventful year in China, securing a $3 billion investment in its IPO from the Chinese government. It also advised the government on its acquisition of a $3 billion or 3 percent stake in UK bank Barclays to aid it in its bid for Dutch bank ABN AMRO.
Rival buyout group TPG appointed the former chief financial officer of Chinese computer company Lenovo Mary Ma to co-head its operations in the country last week.