subject: Carlyle to return to China XCMG unsuccessful acquisitions by experience - Machinery - Machine Tool Industry [print this page] Carlyle to return to China XCMG unsuccessful acquisitions by experience - Machinery - Machine Tool Industry
Co-founder David? Rubinstein (DavidRubenstein) to China, opened a U.S. private equity fund that acquired Xugong (XugongGroup) prologue. XCMG is a Chinese state-owned construction equipment manufacturer.
"This is the Carlyle Group in terms of more than a landmark transaction," he said at the time. "It will be seen as U.S. companies Cooperation An important moment. "
Three years later, after a difficult negotiation, from the fierce political and public opposition, the Carlyle Group abandoned the acquisition.
Since then, other global private equity investment firm in Mainland China and approved the initiation of large-scale transactions, too, has been bad luck.
Carlyle began to focus on small growth companies acquired a minority stake.
However, Rubenstein, Carlyle co-founder with Daniel yesterday? De Nero (DanielD'Aniello) once again came to Beijing, announced the collaboration with the Beijing Municipal Government, the proposed one yuan investment funds and will seek from China pension funds and fund-raising.
To the currency of the domestic enterprises to invest in areas less onerous regulatory approval.
Carlyle acquisition from Xugong learn a lesson, decided to adjust the practices, so that with Beijing's political interests and goals more closely linked, so that they can function more effectively. By Rubinstein's words, China is the world's most attractive private equity market.
Rubenstein yesterday told the British "Financial Times" interview, said Xugong deal "is a learning experience, I hope we can complete the transaction but on the whole, I do not have it as a total defeat. "
He said: "that attracted attention to the acquisition to enhance our reputation in China, ... ... We do not criticize the Chinese government, we do not prosecute anyone, we have never been attacked on the way to handle that transaction . "
If Carlyle had frustrated because Xugong case and open argument, that this time it will be difficult to achieve cooperation with the Beijing Municipal Government. Now, this partnership will enable the group to enter the field of the original could not invest.
De Nero and Rubenstein said Carlyle Group in dollars, funds focused on Asia-related investment can participate in, and this partnership will further enhance the reputation of Carlyle in China.
Rubinstein said that the Beijing government "will be able to prove our reputation as a reliable institution, they will reduce the bureaucracy created by shuffling going on, and help us deal."
But some analysts warned that the municipal government to maintain such a close relationship, might face political interference and corruption Carlyle deal of risk.
In 2008, with the notable case, a top Communist Party official in Shanghai was sentenced to 18 years on charges will be moved to the city's huge pension to his friends and associates controlled investment project.
Rubinstein ignore such concerns: "I am worried about too many things in life, but I do not worry about being forced to do certain things partners."
In China, the private equity industry under the jurisdiction of the legal system is still in its infancy.
So it's unclear when the Carlyle eventually intend to remit the proceeds of RMB-denominated funds in China, it will face what tax and foreign exchange controls.
