U.S. private equity company, the Carlyle Group, continues to attempt to buy less and less of Chinese construction equipment manufacturer Xugong Group Construction Machinery Co. Carlyle said it will now attempt to purchase 45% the Chinese manufacturer of cranes and construction equipment . Reportedly, the smaller stake in is an attempt to ensure Chinese government approval for the deal.
In October, 2005, Carlyle said it was going to purchase it was going to purchase 85% of Xugong for a reported $375 million. A year later the deal had supposedly shrunk to 50% for $230 million.
The Wall Street Journal said Carlyle`s revised deal would make the firm a minority shareholder in Xugong, leaving the government with a controlling stake. If the deal goes through, the construction-machinery company will be 55%-owned by Xugong Group, which is itself owned by the city of Xuzhou.
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