DEALS
Zhong Lun Advises FSI on Strategic Partnership with Shanghai Electric
Zhong Lun Advises FSI on Strategic Partnership with Shanghai Electric
On May 8, 2014, Fondo Strategico Italiano (FSI) - the holding company of Italy’s largest power engineering company, Ansaldo Energia (Ansaldo) - and Shanghai Electric (SEC), a leading Chinese energy corporation based in Shanghai and listed on the Hong Kong stock exchange, signed a long-term strategic agreement. Italian Prime Minister Matteo Renzi presented at the signing ceremony.
This strategic agreement includes Shanghai Electric’s acquisition of a 40% stake in Ansaldo Energia from FSI for Euro 400 million. Anslado and SEC will then establish two joint ventures in Shanghai to engage in the production of gas turbines for Asian markets and the establishment of an R & D center in Shanghai to develop new gas turbine technologies. SEC and the two joint ventures will work synergistically with Ansaldo in Genoa. The transaction is expected to close by year-end following relevant governmental approvals and antitrust clearance.
This transaction represents a landmark strategic partnership in the worldwide power engineering industry. Mr. Zhou Yun, co-head of the M&A Department of Zhong Lun Law Firm, along with senior associate Rose He and Li Hanqi, have acted as the PRC counsel for FSI and Ansaldo in this transaction.
