Hong Kong: Under fire Jiangsu Rongsheng Heavy Industries withdrew its drawn out application to purchase engine manufacturer Anhui Quanchai Engine from the nation’s securities regulator, Quanchai said Saturday. The withdrawal means the acquisition will be cancelled.
Sixteen months ago, Hong Kong-listed Rongsheng launched its ambitious plans to acquire Qunachai for RMB2.15bn to expand its business scope and strengthen its position in the diesel engine market.
In the past couple of weeks a leading Chinese business newspaper, 21st Century Business Herald, questioned the financial health of Rongsheng, China’s largest private shipyard, which has failed to win any orders this year. [20/08/12]