DEALS
Zhong Lun Advises on Mengniu and WhiteWave’s Alliance in China’s Growing Nutritious Beverage Market
Zhong Lun Advises on Mengniu and WhiteWave’s Alliance in China’s Growing Nutritious Beverage Market
On January 6th, 2014, China Mengniu Dairy Company Limited (2319.HK) and Yashili International Holdings Ltd (1230.HK) jointly announced that, Yashili has entered into an Equity Transfer Agreement with Mengniu and The WhiteWave Foods Company, a company listed on the New York Stock Exchange, to sell its subsidiary in Zhengzhou, Henan to a joint venture to be formed by Mengniu and WhiteWave for a consideration of RMB 376million. This announcement is an important milestone for a series of transactions between Mengniu, Yashili, and WhiteWave.
As the legal advisor of Mengniu, Partner SUN Wei of Zhong Lun Law Firm and his team followed through the complex deal, rendering services including designing of deal structure, drafting of documents, and participation in negotiations, in relation to both the joint venture between Mengniu and WhiteWave and the acquisition of Yashili Zhengzhou.
The main asset of Yashili Zhengzhou is a factory under construction, which will be dedicated to the production of plant-based nutritious products. Through the disposal, Yashili will be in a better position to focus on its core milk powder business. WhiteWave is a leading plant-based beverage manufacturer in the world. The joint venture with Mengniu offers a unique opportunity for it to enter the Chinese market. For Mengniu, this transaction marks its expansion into the growing market of plant-based nutritious products, allowing it to face market competition with a more diversified portfolio.
