CITIC Ltd set as biggest firm in China

Hong Kong-based CITIC Pacific has acquired 100 percent of CITIC Ltd for 227 billion yuan ($36.9 billion) from its state-owned parent company, and transformed itself into the largest conglomerate in China.

The new entity will be renamed CITIC Ltd effective today and its Hong Kong-listed shares will be traded under the new name from September 1, the company said in a statement released late on Monday.

The enlarged entity will have total assets of HK$5.32 trillion ($686 billion), making it China's largest conglomerate and surpassing Li Ka-shing's Hutchison Whampoa Ltd.

"As a unique China-focused conglomerate, we are now better positioned financially and strategically," Chang Zhenming, chairman of CITIC Ltd, said in the statement.

The new CITIC Ltd has attracted 27 investors from China and overseas who invested HK$53.3 billion in the company, according to the statement.

In a filing to the Hong Kong stock exchange, CITIC Pacific said it paid HK$53.4 billion in cash and issued new shares worth HK$233.2 billion to designated subsidiaries of its parent, CITIC Group Corp.

The takeover was also the largest by a Hong Kong-listed company. The deal cut public shareholding in the company to 22 percent from 42 percent, according to the filing.

The acquisition of CITIC Ltd, the main operating arm of the parent, has been approved by regulators, the statement said.