use of certain financing tools like issuance of oversea debts and bank guarantees will need to follow specific PRC rules and regulations, which may impact the timetable and deal certainty of the transaction. In addition, the mindset of Chinese purchasers formed under the Chinese legal system may lead to complex negotiations on certain transaction terms and provisions. All these Chinese law matters will have a significant impact on the success of a cross-border transaction involving Chinese buyers. How did you and your colleagues draw upon your unique skills and experience to see the deal to completion? Fangda has been ranked No.1 by Bloomberg in the Greater China M&A league tables by deal count for six consecutive years since 2017. Our accomplished M&A team is familiar with every single detail in a cross-border transaction like this and capable of assisting international sellers in understanding the background of the Chinese buyers and mitigating the risks and liabilities to the extent possible under the relevant Chinese rules and regulations. As we adopt the ’lawyer pool‘ system, we have built a custom team for this transaction, consisting of lawyers qualified Can you give us some background into this sale and how it came about? This sale is a natural move for MAN Energy Solutions as part of its ’Performance 2023‘ program launched in 2020 to adjust its product portfolio. After the sale, MAN will strengthen its focus on large-scale solutions for decarbonisation and climate protection. For GHGT, the existing MGT gas turbine centres in Oberhausen and Zurich will become the strategic fulcrum of its global service network. The logic behind this transaction is similar to the sale of the low-speed, two-stroke engine business by Wärtsilä to CSSC back in 2015, creating a win-win outcome for both parties at the edge of each party’s strategic transformation. What Chinese law matters were integral to the success of a crossborder transaction like this? In a typical cross-border transaction involving Chinese state-owned companies (‘SOEs‘) as purchasers, the Chinese laws regarding outbound direct investment (‘ODI‘), anti-trust and compliance of SOEs will normally be relevant. If the Chinese buyer is a listed company, the PRC securities rules and regulations will also apply. The Lawyer Monthly had the pleasure to speak with Jack Li at Fangda Partners to give us some further insight into this transaction: Fangda has been ranked No.1 by Bloomberg in the Greater China M&A league tables by deal count for six consecutive years since 2017.
RkJQdWJsaXNoZXIy Mjk3Mzkz