A unit of French heavy engineering company Alstom SA has received the approval from China's state asset regulator and Ministry of Commerce to buy 51% of Wuhan Boiler Co., the Chinese company said.

Alstom (China) Investment Co., which Alstom SA indirectly wholly owns, will buy the stake from Wuhan Boiler Group Co. for CNY338.91 million, said the Shenzhen-listed Wuhan Boiler Co. After the deal, Wuhan Boiler Group's stake in the listed firm will fall to 6.91%, said Wuhan Boiler.

The deal, however, is still subject to an approval from the China Securities Regulatory Commission, China's securities regulator.