Chemchina Announces Strategic Investment By Blackstone

New York, NY - China National Chemical Corporation ("ChemChina"), a leading international diversified chemical company, and The Blackstone Group recently announced a strategic partnership to build a global leader in the specialty chemical industry. The Blackstone Group will invest up to US$ 600 million into China National Bluestar (Group) Corporation ("Bluestar"), a wholly-owned subsidiary of ChemChina, for a 20% stake. Antony Leung and Ben Jenkins, a former director of Celanese, will join the board.

Commenting on the deal, Mr. Ren Jianxin, Chairman, ChemChina stated, "We are excited to have Blackstone as a long term partner. Given Blackstone's extensive and successful experience in the global chemical industry, notably past ownership of Celanese Corp. and Nalco Company, this investment will assist Bluestar in its growth and expansion.

Antony Leung, Blackstone's Chairman of Greater China, stated, "We believe that continued economic growth will drive long term growth in China's chemical sector. It is a privilege to invest alongside a superb management team in a leading company in one of China's key industrial sectors."

Ben Jenkins, Head of Blackstone Asia Pacific Private Equity, added, "Bluestar's focus on innovation and technology has made it the leading specialty chemical company in China. We are looking forward to using our global network to accelerate and extend growth of the Company both in China and abroad."

UBS AG acted as financial advisor to ChemChina, and Merrill Lynch acted as financial advisor to Blackstone on this transaction.

SOURCE: China National Chemical Corporation