Blackstone cancels $ 3 billion buyout of real estate giant Soho China
BEIJING (AFP) – 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 the 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 on the Hong Kong Stock Exchange on Friday.
The two parties have now “agreed that the offer should not be made,” adds the file.
Blackstone’s June bid, at HKD 5 per share, was more than 30% above Soho China’s closing price at the time – and valued the real estate group at HKD 26 billion.
A June filing indicated that Blackstone owned “about six 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.