Blackstone invests big in Chinese chemical firm

Blackstone Group agreed to buy 20% of China National BlueStar, a state-owned chemical maker, for US$600 million, the Wall Street Journal reported. This is the private equity firm's first investment in China since Beijing took a US$3 billion stake in it in May. The deal is by far the largest private equity investment in China this year; total private equity investment in China in 2007 so far has amounted to US$752.2 million. The deal is also subject to regulatory approval, and Blackstone's minority stake means its level of control in the investment will be limited. The firm said it hopes to expand BlueStar domestically and internationally. The Chinese government has recently tightened regulations governing foreign investments in local firms, passing a new anti-monopoly law that will scrutinize new deals on national security grounds.