US private equity firms Kohlberg Kravis Roberts (KKR) and TPG Capital have reached a tentative agreement to acquire Morgan Stanley’s 34% stake in China International Capital Corp (CICC) for nearly US$1 billion, the New York Times reported, citing sources briefed on the deal. The deal still requires regulatory approval, and would not be completed for weeks or months, the sources said. Morgan Stanley has been trying to sell its stake in CICC, which it helped establish in 1995, to pursue a joint venture in which it would have more direct management control. The KKR and TPG Capital deal, if approved, would be one of the largest-ever foreign investments in China’s financial services industry.
Categories