Carlyle drops controlling share in leading Chinese construction machine firm

Carlyle Group, a private equity firm from the United States, has agreed to reduce its stake in Xugong Group, a leading Chinese construction machinery manufacturer, from 85 percent to 50 percent.

The new deal is still awaiting for approval by Chinese authorities.

The new deal was signed on Monday, according an announcement Wednesday by Xugong's Shenzhen-listed unit, the Xugong Technology (000425).

The Carlyle deal was submitted to the Ministry of Commerce for approval in December last year but was turned down amid rising concerns that foreign control over key Chinese firms might threat the country's economic security.

Source: Xinhua