Linklaters has advised long-standing client Dairy Farm on its US$925m acquisition of 19.9% of Yonghui Superstores, a Shanghai-listed company with supermarket operations in Mainland China (“Yonghui”). This significant transaction adds to Linklaters’ impressive list of M&A transactions in China over the last 12 months such as advising Jardine Strategic on its acquisition of a 20% stake in Zhongsheng, The Carlyle Group, Yashili and Zhang International in connection with the US$1.62 billion voluntary general offer for Yashili by China Mengniu International Company Limited and most recently, Noble Group on the acquisition by COFCO and the establishment of an agribusiness joint venture.
Dairy Farm’s investment is subject to Yonghui’s shareholder approval and PRC regulatory approval. Dairy Farm also entered into a business co-operation agreement with Yonghui.
Rob Cleaver, one of the lead partners on this transaction commented:
“This is a very significant transaction for Dairy Farm and is the second major investment by the Jardine Matheson Group in Mainland China in the last 12 months, showing the importance of China for the group’s business and their confidence in it.“
The Linklaters M&A team was led by Corporate partners Rob Cleaver, Betty Yap and counsel John Xu.
