U.S. investment house Blackstone Group confirmed Sept. 10 that it will invest as much as $600 million for a 20 percent stake in plastics and chemical maker China National Bluestar (Group) Corp.
The investment, which had been rumored for months, will be used to expand Beijing-based Bluestar, which is part of state-owned China National Chemical Corp.
Bluestar makes engineering plastics, including polybutylene terephthalate and polycarbonate, along with PC building block bisphenol A. The company also has a range of other businesses.
The companies said in a news release that Ben Jenkins, a former director of Celanese Corp. and currently head of Blackstone Asia Pacific Private Equity, will join the board of Bluestar, along with Antony Leung, Blackstone's chairman of Greater China.
``Given Blackstone's extensive and successful experience in the global chemical industry, notably past ownership of Celanese Corp. and Nalco Co., this investment will assist Bluestar in its growth and expansion,'' said Bluestar Chairman Ren Jianxin.
Blackstone's Jenkins said: ``We are looking forward to using our global network to accelerate and extend growth of the company, both in China and abroad.''
New York-based Blackstone raised concerns in Washington when it took a $3 billion investment from state-run China Investment Co. But some observers speculated that action could make it easier for the investment firm to operate in China, according to wire reports. The Bluestar deal still requires regulatory approval.