Ping An Insurance (Group) of China Ltd is in talks to acquire State-owned cosmetics maker Shanghai Jahwa in a deal worth as much as 6.58 billion yuan ($988 million), Reuters reported on Dec 8, citing the China Business News.

Jahwa shares were suspended from trading on Monday pending announcement of "important matters", fuelling speculation of a possible restructuring.

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Ping An, 48 percent owned by HSBC Holdings Plc, may buy Jahwa shares at 40 yuan apiece, compared with the stock's last trading price of 37 yuan, the newspaper said.

If Jahwa's parent sells all of its 38.89 percent stake in the listed unit to Ping An, the deal would be worth 6.58 billion yuan, the biggest ever in China's cosmetics industry, the paper said.

However, the talks between Jahwa and Ping An are ongoing and could collapse, the newspaper said.

Jahwa is selling shares as part of China's push for the government to exit competitive and non-strategic industries.