16 January 2019

KWM assists Liaoning Port Group with the successful closing of the Acquisition Transaction

Following the completion of signing the acquisition agreement of Liaoning Port Cooperation Transaction by People’s Government of Liaoning Province and China Merchants Group in Beijing on 3 November 2018, the participants of the transaction worked together to successfully close the Liaoning Port Group acquisition transaction on 3 December 2018.

On 29 November 2018, Liaoning Northeast Asia Ports & Shipping Development Co., Ltd. changed its name as “Liaoning Port Group Co., Ltd.” (“Liaoning Port Group”), and increased its registered capital to RMB199,600,798.40, of which China Merchants (Liaoning) Port Development Co., Ltd. (a wholly-owned subsidiary of China Merchants Group) holds 49.9% equity, while the State-owned Assets Supervision and Administration Commission of Liaoning Provincial Government maintains 50.1% and remains the controlling shareholder of Liaoning Port Group.

Liaoning Port Group, as the platform for the integration of Liaoning’s ports, holds the controlling stake in Dalian Port Group Company (controlling Dalian Port (PDA) Company Limited (601880: Shanghai and 2880: Hong Kong), and holding Jinzhou Port Co., Ltd. (600190: Shanghai)), and Yingkou Port Group Company (controlling Yingkou Port (600317: Shanghai)). Dalian Port is the largest container hub port, oil and liquid chemicals storage and distribution base, a key ore distribution center, an important bulk cargo transshipment center, the most competitive grain transship center, and the automobile shipping port with the highest growth potentials in Northeast China. Yingkou Port is the largest domestic trade container hub port in Northeast China and an important transit port for the "Belt and Road" Sino-European sea-rail intermodal transportation. Upon the completion of Liaoning ports integration, Liaoning Port Group will become one of the largest port groups in China in terms of assets and throughput. In the future, all parties concerned will build on the momentum to promote the integration of Liaoning port resources towards fully integrated operating entities of coastal ports. This transaction is of essential significance not only to the transformation and upgrading of Liaoning and the revitalization of Northeast China, but also to the economic development of the whole country and Northeast Asia.

As the legal counsel of the transaction team of the People’s Government of Liaoning Province and Liaoning Port Group , KWM advised on the deal structure, participated in the coordination with relevant government departments, drafted and negotiated transaction documents, advanced the completion of the preconditions for closing the porject, facilitated the  communications among various government entities, transaction teams of both port groups and China Merchants Group transaction team, prepared the application for the concentration of undertakings review and related listed company announcements, etc. KWM team’s efficient, high-quality and professional services have been highly recognized by the client and won the trust from both sides of the transaction. 

The KWM transaction team was led by partner Tang Yiyun and the team includes partners Gong Mulong, Zeng Tao, Lv Yinghao and Chai Zhifeng, senior associate Tao Tao, and lead associates He Luting, Zhang Yiming and Wei Lingbo and etc.

Key contacts

A Guide to Doing Business in China

We explore the key issues being considered by clients looking to unlock investment opportunities in the People’s Republic of China.

Doing Business in China
Share on LinkedIn Share on Facebook Share on Twitter
    You might also be interested in

    28 September 2021

    China is poised to rollout a new national emissions trading scheme market demonstrating that China is committed to mitigating climate change.

    03 June 2021

    China’s launch of a central bank digital currency (CBDC) has become a question of when and not if. The more important question for businesses is: how do I get ready for a digital RMB?

    27 April 2021

    This series of articles focusses on the sectors of Chinese debt markets that are in the process of opening up to foreign investors. In this article, we will touch on the state of the PRC real estate...

    19 April 2021

    You may also be interested in...

    Legal services for your business

    This site uses cookies to enhance your experience and to help us improve the site. Please see our Privacy Policy for further information. If you continue without changing your settings, we will assume that you are happy to receive these cookies. You can change your cookie settings at any time.

    For more information on which cookies we use then please refer to our Cookie Policy.