(Reuters) – Global private equity firm Warburg Pincus and China’s Shanghai Baosteel Gases Ltd have agreed a deal to buy the industrial gas assets of Henan Jinkai Chemical Investment Holding Group for 3 billion yuan ($489 million), the two partners said on Tuesday.
The deal is part of a strategic partnership between Warburg and Baosteel to explore projects in industrial gases, as the Chinese company looks to increase its competitiveness at home and internationally.
“Our partnership with Baosteel Gases is of particular significance to both parties, demonstrating the latest progress in our efforts to participate in the ongoing Chinese SOE reforms,” said David Li, managing director of Warburg.
Established in 2008, Baosteel Gases is a wholly-owned subsidiary of Baosteel Metal, which has 15 subsidiaries across China in businesses from industrial gases to energy products.
Warburg has over $39 billion in assets and has invested more than $4 billion in China since entering the market in 1994.