04 November 2015

KWM advises Bindaree Beef on significant Chinese investment

A cross-border King & Wood Mallesons (KWM) team has advised Australian producer, Bindaree Beef on the sale and issue of a combined 45 percent stake in the company to one of China’s largest meat processors, Shandong Delisi Food Co.

The high profile Chinese investment is one of the first in the agribusiness sector since the signing of the China-Australia Free Trade Agreement. The deal serves as a strong example of the opportunities presented to Chinese and Australian agribusiness sectors as tariffs are reduced across a range of products including beef.

Under the deal, Shandong Delisi Food Co will pay $140m for the stake which will enable Bindaree Beef to expand its footprint to supply premium beef markets in China and across Asia.

KWM brought together a cross-border team from the firm’s Australian, China and Hong Kong offices to facilitate the successful negotiation of the transaction. The deal was led by Australian partner Shannon Finch and included senior associates Chris Carr and Intan Eow with support from partners Mark Schaub, Chen Bing and Guojun Ye in Shanghai along with consultant Cai Manli and legal counsel Lin Zhijun in Beijing and associate Paul Fan in Hong Kong.

In Australia partners John Canning and Ken Astridge also advised on the financing aspects of the deal.

The deal required the navigation of complex Chinese regulatory requirements which are common in China but less familiar for western parties. With significant experience advising Chinese bidders investing into Australia and vice versa, KWM was able bring both an international and a Chinese perspective to the negotiations and guide Bindaree Beef on how to successfully meet these regulatory requirements.

Commenting on the deal, KWM partner Shannon Finch said, “China presents the biggest food opportunity in the world, and we are delighted to have been able to assist Bindaree Beef on this important deal which extends its footprint into Asia. The cross border deal is a great example of how we are able to use our Asian insights and capability to the benefit of our Australian clients, drawing from expertise across China and Hong Kong throughout the deal process.”

The deal is subject to Foreign Investment Review Board approval.

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