(Yicai Global) Oct. 20 -- Ping An Insurance Group Co. of China Ltd. [SHA:601318;HKG:2318] will invest CNY6 billion (USD905 million) in a subordinate investment company to help it increase its holdings in daily-use chemicals maker Shanghai Jahwa United Co. [SHA:600315], Securities Times Network reported.

The Ping An investment unit holds a 100-percent stake in Shanghai Jahwa Group Co., the controlling shareholder of the Shanghai Jahwa United with a 27.09-percent stake.

Jahwa Group made a takeover bid to other Jahwa United shareholders on Sept. 22, offering to buy 135 million shares, a 20-percent stake in the firm, at CNY38 (USD5.75) a share. The listed firm's shares closed at CNY36.29 a share on Oct. 19.

Analysts believe the group wants to assume greater control over Jahwa United. If the deal goes ahead, Jahwa Group and its associated parties will hold a 52.02-percent stake in the chemicals maker.