CITIC Pacific completes acquisition of parent company

Employees are seen at the front desk of Citic Pacific Ltd in Hong Kong, China, March 27, 2014. [Photo/IC]

BEIJING - Hong Kong-listed CITIC Pacific announced Monday it has completed acquisition of 100-percent shares of CITIC Limited, the main operating unit of its parent company CITIC Group.

CITIC Pacific will be renamed to CITIC Limited when the process is finished on Wednesday. Trading under the new name on the Hong Kong stock exchange is expected to begin on Sept 1, a statement said.

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CITIC Pacific, a blue chip at the Hong Kong stock exchange, focuses on special steel, iron ore and property development on the Chinese mainland.

It is 58 percent owned by CITIC Group, a State-owned enterprise headquartered in Beijing, which was ranked the 172th on the list of 2013 Fortune Global 500.

In April of this year, CITIC Pacific announced it had agreed to acquire CITIC Limited at a price of 226.93 billion yuan ($36.9 billion).

The deal is one of the largest asset injections into a Hong Kong-listed company from the Chinese mainland. CITIC Pacific secured the deal with cash and new shares.

CITIC Limited, founded in 2011, makes up the largest portion of all the CITIC group assets. It has diverse businesses in securities, mining machinery and real estate.

"Today marks another exciting milestone in our company's history," said Chang Zhenming, chairman of CITIC Limited. "As a unique China-focused conglomerate, we are now better positioned financially and strategically."

CITIC Group was established in 1979 by industrialist Rong Yiren, with the support of late Chinese leader Deng Xiaoping.