Allen & Overy advises Zhongsheng on its acquisition of Jardine Matheson’s Mercedes-Benz dealership in China
01 July 2021
Allen & Overy is advising Zhongsheng Group Holdings Limited (Zhongsheng), a leading automobile distribution group in China, in connection with its acquisition of Zung Fu China from the Jardine Matheson group.
Under the agreement, Zhongsheng will acquire the entire issued share capital of Zung Fu China, which operates the Mercedes-Benz auto dealership business in China under the Zung Fu brand, from the Jardine Matheson group. The total consideration for this transaction is approximately USD1.3bn which will be settled by Zhongsheng in both new Zhongsheng shares and cash.
Completion of the transaction is subject to customary conditions, including approval by regulators in the PRC and Zhongsheng’s shareholders.
Corporate partner Tess Fang commented: “We were delighted to assist Zhongsheng with this strategic transaction, which is significant for Zhongsheng to realise its stated “Brand + Region” strategy and reinforce its market position in the PRC. We have a longstanding relationship with Zhongsheng, having advised them previously in connection with the issuance of convertible bonds and senior bonds. We look forward to continuing to support them in different aspects of their strategic developments.”
Corporate partner and head of Allen & Overy’s Hong Kong Corporate practice Lina Lee continued: “The rapidly developing Chinese automotive market is one of the largest in the world. We’re pleased to offer clients deep experience in this sector across product lines such as M&A, financing, antitrust and technology, amongst others.”
The A&O team was led by Tess Fang with Hong Kong listing expertise provided by Lina Lee. The partners were supported by associates Clara Chang and Michelle Tsang and trainees Michael Cheng and Eugenia Wan. Banking advice was provided by partner Cindy Lo and associate Zoe Lau.