Carlyle Group agreed to reduce its stake in Xugong Construction Machinery to 45% from 50% as the two parties finally reached an investment deal after nearly three years of talks. By reducing its holding, the US buyout firm effectively leaves its Chinese partner, the country's largest construction equipment manufacturer, with a controlling stake, the South China Morning Post reported. Xugong will also have majority representation on the board, with five seats to Carlyle's four, and have the right to appoint a president to the joint venture. Carlyle has promised to retain the Xugong brand and to help its domestic partner develop new products. Completion of the deal, which has in the past year escalated into a significant political debate, is pending approval from the Ministry of Commerce.