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Gide Loyrette Nouel (GLN) has advised the Carlsberg Group (Carlsberg) on the formation of a joint venture with Chongqing Brewery Co. Ltd (CBC) and Chongqing Light Textile Holdings (Group) Co. Ltd (CLT). This transaction follows Carlsberg's recent acquisition of an additional shareholding in CBC, a Chinese company listed on the Shanghai Stock Exchange. In late 2010, GLN advised Carlsberg on increasing its stake in CBC from 17.46% to 29.71%, a transaction which made Carlsberg the largest shareholder in CBC. CLT is CBC's other main shareholder. The establishment of a joint venture with CBC and CLT reflects Carlsberg's desire to continue to expand its Chinese operations. The joint venture, Chongqing Xinghui Investment Co. Ltd (CXI), will be owned 51.42% by CBC, 18.58% by CLT and 30% by Carlsberg. The joint venture parties intend that CXI will operate 12 breweries in China, across the Chongqing municipality, Sichuan, Guangxi, Guizhou and Hunan provinces. In terms of contributions to the joint venture, CBC will contribute ownership of five breweries, CLT will contribute ownership of seven breweries and Carlsberg will make a cash contribution of approximately RMB 204m (USD 31m). The transaction is conditional upon various approvals.
GLN is advising Carlsberg on all aspects of the joint venture transaction including structuring, negotiation, documentation and regulatory formalities. The GLN team advising Carlsberg is led by Warren Hua, Partner and Head of GLN Beijing, with assistance from partner Zheng Yu and senior associate Sun Jin.
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