DEALS
Zhong Lun Advises China Resources Cement on Acquisition of Several Clinker and Cement Grinding Lines in Inner Mongolia
Zhong Lun Advises China Resources Cement on Acquisition of Several Clinker and Cement Grinding Lines in Inner Mongolia
On June 29, 2011, China Resources Cement Holdings limited (“CRC") announced the signing of a Share Purchase Agreement between China Resources Cement Holdings (Hong Kong) limited (“CRC Hong Kong") and Panda Investment Ltd (“Panda"), an indirect wholly owned subsidiary of The Goldman Sachs Group, Inc., to acquire 100% issued shares of Inner Mongolia Cement Strategic Investment Holdings Limited, an wholly owned subsidiary of Panda, at the consideration in excess of RMB 1.5 billion. Upon completion, CRC Hong Kong becomes the holder of the 40.6% equity of Inner Mongolia Mengxi Cement Co., Ltd. (Mengxi Cement).
In this acquisition, lawyers form Zhong Lun Law Firm acted as the external counsel for CRC. Zhong Lun Shenzhen Office’s partner Catherine Guo and Hong Kong Office’s partner Henry Lau led the team consisting of Shenzhen associates Cheng Di, Zhang Fan and Qiu Ju and Hong Kong associate Stephen Wong to advise on this transaction. The team provided legal services for CRC in all respects from deal structuring, onshore due diligence, documentation and negotiations. The efficient and seamless work of Zhong Lun secured the successful completion of the acquisition in a short time period.
Mengxi Group (i.e. Mengxi Cement and its subsidiaries) is the largest NSP clinker and cement producer in Inner Mongolia. CRC believed that the acquisition will complement the CRE Group’s long term expansion plan in Inner Mongolia and increase the clinker and cement production capacities attributable to the group. As the CRC Group does not presently have any clinker or cement production operation in Inner Mongolia, the acquisition will allow CRC to extend its market presence there.
