Dacheng Attorneys Advise Renowned Agricultural Machinery Manufacturer on Equity Merger

Recently, CLAAS, a manufacturer of agricultural engineering equipment headquartered in Germany, completed its purchase of equity in Shandong Jinyee Machinery Co., Ltd.. The Shandong-based company was advised by a Dacheng team led by senior partner Zhang Nianchun from the M&A practice, with support from Qiu Juan and Wu Huanhuan. The attorneys took part in negotiations with the German manufacturer, drafted and reviewed all transaction-related documents and application materials, assisted the client in seeking approval from government regulators such as the Ministry of Commerce, and assisted in the completion of the transaction. Their service was highly commended by the client.
 
Shandong Jinyee Machinery Co., Ltd. is a leading manufacturer of harvesters in China who has two main production bases located in Gaomi of Shandong province and Daqing of Heilongjiang province respectively. Its product series branded “Chunyu” (meaning “spring rain”) provide wheat and corn harvesters that are able to generate up to RMB600mln of sales revenue annually. The German company CLAAS, founded in 1913, is now a century-old top manufacturer of agricultural machinery in the world. It leads the combine harvester industry in Europe and takes a predominant market share in the world’s self-propelled silage harvester sector. CLAAS also produces the world’s best tractors, straw binders and forage harvesters. In 2012, its sales revenue arrived at 3.4bn euros. The powerful cooperation between the two giants will undoubtedly benefit China’s farmers and agriculture.
 
In May 2013 when Premier Li Keqiang was on a visit to Germany, he had inquired about the project in question. The project also engaged the attention of the State Council, the Ministry of Commerce, relevant parties and the media.