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SCMP Reporter

CVC Asia-Pacific, a unit of the US buyout firm, has won approval from the mainland's Ministry of Commerce to buy a 29 per cent stake in plastic bottle maker Zhuhai Zhongfu Enterprise for US$225 million.
The sale makes CVC,  whose parent manages  more than US$26 billion in equity capital, the Shenzhen-listed company's largest shareholder. It will appoint three executives to Zhongfu, including Russell Jones, the former chief executive of Amcor, Australia's largest packaging company.
'We now look forward to working with management to further grow sales, introduce new packaging products and services, and improve operations over the long term,' said William Ho, CVC managing director.
The buyout firm did not specify the roles of  the three executives it will appoint at Zhongfu.
US buyout giants have had to back away from outright control deals in the mainland and settle for smaller growth capital investments. Beijing opposes the transfer of state assets to foreign hands in  many sectors it deems necessary for national and economic security.
Blackstone plans to pay US$600 million for a 20 per cent stake in  chemical producer China National Bluestar in a deal announced  last month. The deal is pending regulatory approval.
Kohlberg Kravis Roberts  last month announced the acquisition of a minority stake in  cement maker Tianrui Cement for US$115 million.  KKR also had the company arrange a US$335 million loan aimed at expansion.
Zhongfu is the largest plastic bottle maker by volume in Asia,  CVC said. Clients include Coca-Cola, Pepsi and Taiwan's Uni-President.
The mainland beverage market is expected to  achieve a compound  annual growth rate of 11.6 per cent from  last year to 2011, CVC said.
Zhongfu's sales  totalled US$300 million last year. Its Shenzhen-listed shares have risen 292 per cent this year,  against the 171 per cent  gain in the Shenzhen Composite Index.



CVC cleared to buy 29pc of Zhuhai Zhongfu