Zhonghong Zhuoye Group Co Ltd, the Chinese real estate and leisure group which last month bought a stake in SeaWorld Entertainment Inc (SEAS.N), is in talks to acquire Brookdale Senior Living Inc (BKD.N), people familiar with the matter said.
The deal would be by far the biggest acquisition by a Chinese company in the U.S.
Brookdale has entered exclusive negotiations with Zhonghong after it made an offer of around $3 billion, the sources said on Tuesday.
Brookdale needs to be convinced that a deal with Zhonghong would be approved by the Committee on Foreign Investment in the United States (CFIUS), which scrutinizes corporate acquisitions for potential national security risks, according to the sources.
The company's stock has struggled in the wake of its $2.8 billion acquisition of Emeritus Senior Living in 2014, which proved a drag on financial performance as a result of employee churn and falling occupancy.