King & Wood Mallesons advises on CMEGC’s privatisation of CMEC

China Machinery Engineering Group Corporation (CMEGC, formerly known as China SUMEC Automotive Industry Consulting Development Co., Ltd.), a wholly-owned subsidiary of China National Machinery Industry Corporation Ltd (SINOMACH) privatised China Machinery Engineering Corporation (CMEC, 1829.HK) by way of merger by absorption. CMEC was delisted from the Stock Exchange of Hong Kong on 6 August 2021. This is the largest privatisation transaction of an H-share listed company so far this year.

Established on 21 May 1988 with a registered capital of RMB 26 billion, SINOMACH is one of the Fortune Global 500 and an important backbone SOE directly managed by the central government of China. It has been ranked first among China's top 100 machinery industry enterprises for consecutive years.

King & Wood Mallesons (KWM) acted as the PRC counsel for SINOMACH and CMEGC in this transaction. With extensive experience in capital markets and banking & finance, the KWM team provided the clients with practical solutions to the unique challenges and various corporate, securities and finance issues under the PRC law.

The KWM team was led by partners Li Yuanyuan and Xu Chunlong.