Citic Group, which spent HK$11.6 billion rescuing Citic Pacific after its ill-fated venture in Australian accumulator contracts, may consolidate some of the similar business units of the two companies to avoid competition, according to executives of the state-owned firm. Citic Group would support Citic Pacific's business development on the mainland and its iron ore project in Australia, Chang Zhenming, the deputy chairman and president of the mainland's biggest state-owned investment company was quoted as saying by the China Business News. 'In the past, [Citic Group] had only a 29 per cent stake in Citic Pacific,' Mr Chang said. 'Citic Pacific is an independent company. Some of our business units may be in competition with Citic Pacific.' But the relationship changed after the bailout, which nearly doubled Citic Group's stake in the blue-chip company to 57.56 per cent. 'As the controlling shareholder, Citic Group will consider how to avoid competition between Citic Pacific and other units and consolidate similar ones,' said Mr Chang, without giving further details. Citic Group and Citic Pacific engage in property development on the mainland. Mr Chang declined to comment on whether Citic Pacific chairman Larry Yung Chi-kin and managing director Henry Fan Hung-ling would be removed, or whether there would be a reorganisation of the company's board of directors and management. Some Citic Pacific shareholders have called on Mr Yung and Mr Fan to step down over doubts about their credibility in handling the company's massive investment losses. In October, Citic Pacific disclosed that it faced potential losses of HK$15.5 billion - which it later raised to HK$18.6 billion - from investing billions in Australian dollar accumulator contracts, hoping the currency would continue to rise. Citic Group later came to the unit's rescue by buying convertible bonds and assuming about 66 per cent of the accumulator contracts. Citic Group assistant general manager Zhang Jijing said the group would help Citic Pacific find investment opportunities on the mainland. He also said Citic Group may increase its investments in Australia, especially in mining. There has been criticism that the bailout was unfair to minority shareholders, as the conversion price of HK$8 for the bonds was considered too low by many. Others said it was a waste of state-owned money to rescue a unit in which Citic Group owned only a 29 per cent stake. 'You should not only look at the HK$8 conversion price, [Citic Group] needs to bear the exchange risks over the next 24 months,' Mr Zhang said. He said Citic Pacific was worth rescuing because its core businesses - special steel and mining, mainland property development and infrastructure - were all in good shape and its net asset value per share was almost HK$20 after deducting the potential losses from the foreign exchange accumulators.