Blackstone cancels $ 3 billion buyout of real estate giant Soho China
A U.S. private equity firm has abandoned a $ 3 billion purchase plan for Chinese property developer Soho China as antitrust authorities have yet to approve the deal.
Blackstone had hoped to expand its presence in the country through the acquisition of Soho China, which owns prime real estate in cities like Beijing.
But its offer was subject to clearance from the Chinese competition authorities, and the parties concluded that the preconditions would not be met within a specified time frame, according to a filing filed with the Hong Kong Stock Exchange on Friday.
The two sides have now “agreed that the offer should not be made,” the file added.
Blackstone’s June bid, at HK $ 5 per share, was more than 30% above Soho China’s closing price at the time – and valued the real estate group at HK $ 26 billion (3.3 billion of dollars).
A June filing indicated that Blackstone owned “about 6 million square meters of property in China.”
The latest joint statement did not clarify why the deal failed.
But it comes as Beijing steps up a sweeping crackdown on monopoly behavior and deals that have scared the once-unassailable Chinese tech giants, with regulators attacking sectors ranging from e-commerce to education.
The real estate sector has also been hit in recent weeks, with a crackdown making it harder to raise funds and struggling companies like real estate giant Evergrande struggling to repay debts.
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