Equity firm buys stake in Xurong

Carlyle Group has agreed to acquire 85% of state-owned construction equipment manufacturer Xugong in a US$375 million deal that has taken more than two years to complete, The Wall Street Journal reported. The buy-out suggests that China may be warming to the involvement of foreign private equity funds in the country, although the protracted negotiations are seen as being inevitable with such deals. In September, Carlyle agreed to pay US$400 million for 24.9% of China Pacific Life Insurance Co, following a dispute with the company's state-owned parent that delayed things for more than a year.