Select Page

M & A

Acquisitions in the PRC

Charltons is experienced in advising on acquisitions in the PRC and on disposals of mining assets by Chinese mining state-owned Enterprises (“SOEs”).

With representative offices in Beijing and Shanghai, and close working relationships with PRC law firms, Charltons is ideally positioned to advise mining and natural resource companies on acquisitions in the PRC.

Common types of acquisition transactions in the PRC include:

Direct Equity Acquisitions

Foreign investors have the option to purchase all or part of the non-listed equity interest of a PRC target company directly from the investors in the target company (“Direct Acquisition”), or by subscription to any increased capital of the target. Foreign investors that acquire equity interests in a PRC target company shall submit an initial report through the enterprise registration system to modify the registration of the PRC target company. A Direct Acquisition is subject to antitrust review regime if certain thresholds are met.

Offshore / Indirect Acquisitions

In offshore / indirect acquisitions, the foreign investor acquires or increases control over a PRC target company via the offshore purchase of some or all of the shares of the PRC target company’s foreign parent company. This option is available only if the PRC target has foreign investors. An offshore transaction is conducted in the jurisdiction of incorporation of the offshore company and is generally not subject to PRC jurisdiction and review, except in certain circumstances pursuant to the newly established antitrust review regime in the PRC.

Asset Acquisitions

In the case of an asset acquisition, the foreign investor uses a foreign invested enterprise as the acquiring vehicle to purchase directly some or all of the business and assets of the PRC target company. Such transactions are subject to PRC law and approval requirements.

Read our latest News

Sinopec To Begin Operations In Sri Lanka On 20 September

McEwen Considers IPO For Its Los Azules Copper Project

NATURAL RESOURCES News   Canadian entrepreneur Rob McEwen said he is contemplating various financing routes for his Los Azules project in Argentina, hinting at a potential initial public offering (IPO) as early as November. Although...

Vision Blue Resources Invests m Into Mayur’s Lime Project

Sinopec To Begin Operations In Sri Lanka On 20 September

NATURAL RESOURCES News   Chinese oil giant, Sinopec, is set to commence operations in Sri Lanka on 20 September. The Chinese firm has been granted a 20-year licence to operate 150 fuel stations and sell fuel below the local...

Oil Prices Fall Ahead Of China’s Economic Data Release

Vision Blue Resources Invests $40m Into Mayur’s Lime Project

NATURAL RESOURCES News   UK investment fund Vision Blue Resources (VBR) is investing $40 million to acquire a 49% stake in Mayur Resources’ lime venture in Papua New Guinea. This capital is anticipated to fully cover the project’s...

Rio Tinto, Guinea’s Government And WCS Collaborate On Simandou Iron ORE Infrastructure Development

Oil Prices Fall Ahead Of China’s Economic Data Release

NATURAL RESOURCES News   Oil prices dipped in early trading on 15 August as investors awaited crucial economic data from China, which is one of the world’s leading oil importers. US West Texas Intermediate crude fell by 0.13% or 11...