Blackstone has abandoned its proposed US$4 billion tie-up with New World Development Co. after the Hong Kong developer refused to hand over control, ending a yearlong negotiation that had stalled in recent months, sources said. [1, 2, 3]
Blackstone told New World of its decision, according to the reports published on 2026-05-13. Goldman Sachs Group advised Blackstone on the talks. [1, 2, 3]
Under the original plan, Blackstone would have become New World's largest shareholder and would have injected about US$2.5 billion into a special-purpose vehicle, while the Cheng family would have contributed US$1 billion to US$1.5 billion. Blackstone also wanted to restructure New World to cut leverage, reset bank loan terms and review assets. [2, 3]
New World had been speaking in parallel with other suitors, including a consortium led by RRJ Capital and Ares Management. Unlike Blackstone, they were not seeking control and were considering minority stakes of less than 30%, sources said. [2, 3]
Competing groups had pressed New World to resolve about HK$70 billion of liabilities linked to a long-term rental agreement for a shopping mall at Hong Kong airport before any deal could go ahead. CapitaLand Investment also previously held talks with New World, though it was unclear whether those discussions were still under way. [2, 3]
The talks drifted in March 2026 as New World kept speaking with other bidders, including the RRJ Capital and Ares Management consortium. [2, 3]
New World now faces the unresolved liability issue and the continued search for an investor willing to take a smaller stake. [2, 3]
