Cement firm Jilin Yatai (Group) Co Ltd said it has received approval from the National Development and Reform Commission, China’s economic planning agency, for the sale of a strategic stake to Ireland’s CRH Plc.
In December 2007, the company agreed to set up a wholly-owned unit, Jilin Yatai (Group) Cement Investment Co Ltd, with registered capital of CNY2.743bn.
It intends to inject its entire cement production assets, including stakes in all cement units, into the new entity.
The company also agreed to sell a 26 per cent stake in the new entity to CRH for CNY2.13bn. CRH also has an option to increase its holding in the new entity to 49 per cent for about CNY2bn within 4-6 years after the deal. The deal is pending approval from other Chinese regulators, such as the Ministry of Commerce.