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Morrison & Foerster Advises CNR Corp. In Merger With CSR Corp.

8 June, 2015

 

 In a groundbreaking merger in the rolling stock manufacturing industry between two state-owned enterprises in China, Morrison & Foerster has advised China CNR Corporation Limited in its USD 26bn merger with CSR Corporation Limited.

 

Hong Kong-based corporate partner Charles Chau led the deal team on behalf of CNR. The merged company will be known as CRRC Corporation Limited. The registration procedures of the merged company were completed on June 1, 2015.

 

“The new entity is on the cutting edge of an effort by the Chinese government to consolidate state-owned enterprises (SOEs) in a variety of industries.  The combination of CNR and CSR creates a major new global player in the rolling stock business – which remains a critical part of the world’s supply chain,” said Mr. Chau of Morrison & Foerster.

 

“Chinese companies have aggressively marketed their railcar industry in emerging markets worldwide, and this tie-up will likely increase their competition with the top players in the industry, including those in Europe and the U.S,” he added.  “Consolidation of SOEs in China – to make them more flexible and market-responsive – is an ongoing trend. We’re confident we’ll see more of these enterprises emerging in diverse industries in China and hope to play a central role in their formation.”

 

The tie-up is the first between companies simultaneously listed on the Hong Kong and Shanghai Stock Exchanges. 

 

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