Private equity firm Blackstone Group is abandoning its $ 3 billion bid for a majority stake in Soho China, one of the country’s largest real estate developers.
In a regulatory filing on Friday, Blackstone said it had decided to drop the deal “in the face of a lack of sufficient progress” with state regulators who would need to approve the purchase. Blackstone announced the deal in June, offering around 30% above Soho China’s then share price.
Blackstone made no further details about the abandoned deal. The company has made several large real estate investments in China, including a controlling interest in a large logistics park in southern China’s Greater Bay Area, a prime office and retail complex outside of Shanghai, and an apartment building in Shanghai that was completed last year.
Soho China is controlled by Zhang Xin and her husband Pan Shiyi. They founded the company in 1995 and it has developed 1.3 million square feet of real estate across China.
China has increasingly cracked down on large deals. The country’s most recent five-year plan contains promises to strengthen rules that would combat monopoly behavior and regulate technological innovation. The authorities also urged law enforcement agencies to act in areas of “vital human interests”, including financial services, education and tutoring.
The CNN Wire
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