Hong Kong – LAWFUEL – The Asia Business & Legal Newswire – DLA Piper has advised China International Marine Containers (Group) Co Ltd (CIMC), one of the largest container manufacturers in the world, on its acquisition of Netherlands-based Burg Industries BV, a fast-growing and leading supplier of road transport equipment and special static tanks. The €108 million acquisition provides CIMC with an 80% stake in Burg Industries (Burg).
As well as structuring, documenting and negotiating all aspects of the deal, DLA Piper also provided advice on European Union competition law, which included restructuring the acquisition after the European Commission objected on competition grounds to the original acquisition in February 2006.
The transaction was led by Mabel Lui and Tejinder Mahil, partners in DLA Piper’s Hong Kong office. “As Chinese companies continue their offshore expansion there is strong demand for legal services from experts who both understand the dynamic business and regulatory environment in China and are able to negotiate the complex regulatory landscape in Europe. DLA Piper’s international experience in a wide range of practice areas allows our clients to consider conditions in all countries involved, helping clients make informed and strategic business decisions,” said Mrs Lui.
DLA Piper’s Hong Kong office worked closely with teams in: Amsterdam; Brussels; Germany; France; DLA Piper Group firm, Cliffe Dekker, in South Africa; and lawyers in Finland on various aspects of the deal.
Mr Mahil said, “Our team’s experience in cross-border deals and joint ventures in Asia, combined with the expertise of DLA Piper’s well-established offices in a number of jurisdictions, were key to the deal. We were delighted to be able to provide CIMC with the right combination of local and international legal advice to enable it to successfully undertake and conclude this strategically-important acquisition.
“China is at present the world’s largest container producer and further expansion into overseas markets is expected,” said Nick Seddon, Asia Managing Director of DLA Piper. “European companies have been expanding into China for some time, but now more and more Chinese companies are in a position to grow their European and international operations. CIMC’s acquisition of Burg illustrates this trend.”
Burg’s products, which include road transport equipment and special static tanks, are well established in international markets, particularly in Europe. Through the acquisition, CIMC, listed on the Shenzhen Stock Exchange, is expected to broaden its product line and global presence. It is also expected to benefit from research, product development and production facilities.