M&A of domestic engineering design enterprises by foreign counterparts

By Han Yanyuan and Luo Jia, East & Concord Partners

Article 4 of the Provisional Regulation of the Ministry of Construction on the Administration of Foreign Enterprises Engaging in Construction Engineering Design Related Activities in China stipulates that when a foreign enterprise undertakes construction engineering and design in China, it has to co-operate with at least one Chinese construction engineering design enterprise to proceed with the design undertaking, and it should not provide the services for compiling the preliminary design of construction projects, designing the construction drawings and other services to the clients within China by itself.

Han Yanyuan Partner East & Concord Partners
Han Yanyuan
East & Concord Partners

Faced with the huge construction design market within China, the shortcut for foreign enterprises to march into the Chinese market is to merge with an enterprise with a construction engineering design qualification, in order to proceed with the design undertakings.

This column will discuss some mergers and acquisitions (M&A) cases that this firm has handled, where foreign companies acquired construction engineering design enterprises located in Beijing, and we can share some experiences.

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Han Yanyuan is a partner and Luo Jia is an associate at East & Concord Partners


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E-mail: hanyanyuan@east-concord.com