A Chinese textile producer has backed out of a deal to acquire a Pakistani company. Shandong Ruyi Science & Technology backed out of the deal to take majority control of Pakistan textile maker Masood Textile Mills.
There are rumors the Chinese company couldn’t get credit to fund the deal. Whether this is true or not, there are mounting concerns about stresses in the Chinese financial system as the country’s economy slows. Both parties are currently going through a new round of negotiations. Ruyi has other projects in Pakistan. These include two 660 megawatt coal-fired power plants. The project is being backed by support from China Development Bank, Bank of China and other financial institutions and is part of the China-Pakistan economic corridor, the name given to the government initiative to better link the two nations economically with infrastructure and investment.
Pakistan has signed deals with China for the development of much-needed infrastructure and energy projects.
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