China Communications Construction Company (CCCC) has conducted a complex acquisition involving Chinese, US and Russian components.
CCCC is involved in the design and construction of transport infrastructure, dredging and the manufacturing of heavy machinery. Freshfields Bruckhaus Deringer advised it on the acquisition by its subsidiary, Zhen Hua Engineering Company, of Friede Goldman United, a provider of design services and equipment for offshore drilling rigs.
Zhen Hua Engineering has acquired 75% of Friede Goldman from IIHC Industrial Investments, Attiva Holdings and Bretten Business, and the remaining 25% from Goldman Offshore Design.
Friede Goldman is a well known brand in the offshore industry, especially recognized for its jack-up rig and semi-submersible designs.
The acquisition is an important strategic step in expanding CCCC’s offshore construction capabilities. Offshore exploration is an important element of China’s quest for oil and gas, and in achieving self-sufficiency in terms of the supply of natural resources.
The deal enhances CCCC’s early-stage design capabilities, and also its ability to provide complex offshore construction solutions to Chinese and international customers.
The Freshfields team in the acquisition was led by Hong Kong managing partner Kay Ian Ng, who was assisted by associates Janet Low and Alan Zhang. The IP aspects of the transaction were led by IP specialist partner Connie Carnabuci, who was assisted by associates Richard Bird and Tamsin Westley. Freshfields also acted on the financing of the transaction, with partner David Winfield and associates Genevieve White and Julia Zhu
representing HSBC.
On the complex cross-border nature of the deal, Ng commented: “This deal had its significant challenges. Our client is a Chinese state-owned enterprise doing an outbound M&A deal buying a US-based engineering and technology company from the vendors, who are Russian private equity funds. It is not often we have an M&A deal involving Chinese, Russian and American components. It does show that, with the right levels of communications and relationships, a deal like this can be smoothly signed and consummated.”
Freshfields is no stranger to the CCCC, having advised it on its US$2.1billion IPO in Hong Kong in 2006.
