Jia Yuan Law Offices, Zhong Lun Law Firm and Commerce & Finance Law Offices are acting for parties on Qingdao Port International’s acquisition of stakes in four subsidiaries under Rizhao Port Company and Yantai Port Group for RMB9.44 billion (USD1.34 billion).
Qingdao Port International appointed Jia Yuan’s partners Yan Yu, Li Li, and Liu Zhuoli as counsel. Partner Alan Xu, Shell Chen and senior counsel Arthur Xu from Zhong Lun advised the buyer on H-share matters.
Partner Kong Xin from Commerce & Finance acted as counsel for Yantai Port Group and financial adviser CITIC Securities.
Qingdao Port International will acquire 100% equity in Rizhao Port Oil Terminal and 50% equity in Rizhao Shihua, both of which are Rizhao Port subsidiaries.
It will also purchase 53.88% in Yantai United Pipeline and 51% in Shandong Gangyuan Pipeline Logistics, through the issuance of shares and cash payments. Both companies are subsidiaries of Yantai Port Group.
Qingdao Port International, the main operator of Qingdao Port, halved its initial plan to acquire eight companies as it shifted focus on purchasing a crude oil business. The Shanghai and Hong Kong-listed operator runs businesses in logistics in containers and stevedoring metal ore, coal and crude oil.
The buyer as well as the two major sellers all belong to the Shandong Port Group. The parent company had vowed to resolve overlapping port businesses and intra-industry competition by 2027 through the restructuring of assets, equity transfers, and business adjustments.
