Goldman Sachs is in advanced talks to take a quarter of a privately owned cement maker in east China for nearly $80m, marking the latest foreign foray into the country’s fragmented cement sector.
Goldman Sachs has in principle agreed to pay CNY600m (US$79.12m) for 25 per cent of Hongshi Cement, which holds all the assets of its namesake holding company, a source said.
"The two sides are working out some technical details and the final agreement could be signed before the end of the year," the source said.
He added that Hongshi Cement would also go public eventually, preferably in the domestic market, but the timetable and other details have yet to be discussed.
Hongshi executives declined to comment and Goldman’s China operations could not be reached immediately.
The deal underscores strong foreign interest in China, where global investment banks and private equity firms – from Morgan Stanley to Carlyle – are eager to cash in on the country’s breakneck economic growth of 10 per cent or more annually.