Deal



Gide advises sale of Beijing Airport

Gide Loyrette Nouel announced it has advised A¨¦roports de Paris (ADP) on the sale of its equity stake in Beijing Capital International Airport Co Ltd (BCIA). On February 26, the French airport operator sold its entire stake in the Hong Kong-listed firm which operates Beijing Airport for around US$225 million (?169 million). ADP originally bought the shares, representing approximately 6.6 percent of BCIA, when 35 percent of the firm's capital was floated on the Hong Kong stock exchange in 2000. The Gide Loyrette Nouel Hong Kong legal team, led by Fabrice Turries, advised ADP on the PRC and Hong Kong aspects of the transaction, working in collaboration with Herbert Smith Legal Services.

CEIBS partners with global tech firm

The China Europe International Business School (CEIBS) has signed a corporate partnership agreement with Dow Corning Corporation, a leader in silicon technology and innovation. Dow Corning will donate ?100,000 over the next three years to support CEIBS's development fund which maintains faculty, staff, and research, and supports academic and cultural activities. CEIBS and US-based Dow Corning joined forces in 1997 on MBA graduate recruitment and executive development programs. CEIBS recently became the first Asia-Pacific business school to enter the first tier of Financial Times' ranking of Global MBA Programs, ranking 11th in the top 100 list of 2007.

BBVA receives approval

Spanish bank Banco Bilbao Vizcaya Argentaria SA (BBVA) has received approval from regulators in China, Hong Kong and Spain to purchase 4.83 percent of China CITIC Bank and a 15 percent stake in Hong Kong-listed CITIC International Financial Holdings Ltd. BBVA signed the deal on March 1 and will invest a total of US$1.25 billion (?939 million) in the two banks.

Vodafone signs deal with Chinese firm

Vodafone has signed an agreement with ZTE Corporation for ZTE to produce a range of low-cost handsets carrying only the Vodafone brand name for sale across Vodafone's markets. The first handset manufactured by ZTE is expected to go on sale in the second quarter of 2007. Jens Schulte-Bockum, Vodafone's Global Director of Terminals, said, "We are pleased that we have signed this agreement with ZTE which will build on their experience in emerging markets to create for us an ultra-low cost handset as the first of a range of products we seek to develop with them." He Shiyou, a ZTE senior vice-president, commented, "This agreement with one of the world's largest mobile operators is a breakthrough for us and highlights ZTE's ability to develop handsets according to European operators' requirements and standards". ZTE is China's only listed telecoms manufacturer, with shares publicly traded on both the Hong Kong and Shenzhen Stock Exchanges.

Alstom to reduce stake in local firm

Alstom has agreed to reduce the size of its expected stake in Wuhan Boiler Co Ltd to below 50 percent from the planned 51 percent, to help the deal win government approval. In April 2006, Alstom signed an agreement with Wuhan Boiler Group that saw it take a 51 percent share in the Chinese company's subsidiary, Wuhan Boiler Co Ltd.

Launch

Airbus to launch China plant

Airbus's first assembly plant outside Europe is scheduled to be completed by the end of the year in Tianjin. Around US$90.5 million (?68.7 million) has been invested in the facility's infrastructure to date, and Airbus's total investment is expected to reach between US$1.03 billion and US$1.29 billion. The France-based manufacturing firm holds a 51% stake in the plant. Last year, Airbus said that first deliveries from the plant are due in 2008, and by 2011 it will have the capacity to assemble four aircraft per month. Airbus has forecasted that mainland China will need more than 3,000 passenger aircraft and freighters from 2006 to 2025 and its freighter traffic will grow six-fold. "In terms of in-service aircraft, Airbus' market share on the Chinese mainland has already increased from seven per cent in 1995 to the current 35 percent, said John Leahy, the chief operating officer of Airbus's customer division. "Our aim is to reach 50 percent in 2011. In the next 20 years, the greatest demand for passenger aircraft will come from the Chinese mainland, just after the United States." Airbus anticipates the opening of more than 110 new long-haul routes to and from China.

Soci¨¦t¨¦ G¨¦n¨¦rale to incorporate on mainland

Soci¨¦t¨¦ G¨¦n¨¦rale said it will apply to incorporate its business in mainland China to take advantage of the fast-growing wealth management market. "We want to develop our retail, corporate and private banking business," said Daniel Truchi, global head of SG Private Bank. Once it receives approval, SG Private Banking is looking to start operations in Beijing, Shanghai, Guangzhou and Chengdu. The entry level for its mainland clients could be US$500,000 (?375,000), instead of US$1 million in other markets. Truchi said Fortune SGAM, the group's asset-management JV, had doubled its managed assets in the three months to January to US$3.5 billion. The company's mainland expansion plans suffered a setback last year when it was outbid by Citigroup for control of Guangdong Development Bank.

Savills launches new office

Savills has announced the launch of a new office in Chengdu, offering full agency services including residential sales, commercial and retail leasing, property management, research, development and consultancy and valuation. Randall Hall, CEO of Savills Greater China, said "Chengdu has had very impressive growth rates over the past few years, leading to record foreign investments. Considered a gateway to Western China, skilled labour and lower start-up costs have long attracted many foreign companies to Chengdu, thus leading to a greater demand for property related services." The property firm has already started business in the south-western city with the official appointment as property management consultant for the Sandal Wood project with Chengdu Qianhe Manager Development Company, Ltd. Other appointments to date for the company include being named property management consultant for Sun Dynasty and High Living projects in Chengdu. Hall said Savills expects to open another two offices in China this year.

Standard Chartered to expand further

In January, Standard Chartered Bank received approval to set up a branch in Chongqing, in which it will invest RMB200 million (?19.4 million). The branch will provide full foreign currency services and establish a special team to support small and medium-sized enterprises in Chongqing and the surrounding region. Katherine Tsang, CEO of Standard Chartered Bank China, said, "This is a very encouraging piece of news to Standard Chartered Bank as the approval came right at the beginning of the New Year. It marked a good start for 2007 - the year that you will witness Standard Chartered's local incorporation in China, and the launching of a series of exciting development plans." Tsang added that Chongqing is attracting more and more investments and the bank's decision to establish its branch network in the city shows Standard's commitment to China's western region. The bank also has a branch in Chengdu which opened in 2005. It said it will double its number of branches in China to 40 by the end of 2007 and will expand into private banking in the next six months. Standard's finance director, Richard Meddings, said China was a key area of investment for the bank, along with South Asia and the Middle East.

Siemens road show arrives in Beijing

In March, the exiderdome road show of Siemens Automation and Drives (A&D), which provides industrial automation, started exhibiting in Beijing, marking the last stop of its seven-month China tour covering six cities. The exiderdome is a movable exhibition hall that tours focus markets around the globe, displaying A&D's products, systems, solutions and technologies. The road show stayed in Beijing for seven days, during which special focus was given to drives products, process automation, low-voltage business and factory automation. Mr Gierse, president of Siemens A&D, said, "With strong and enduring commitment to China, we are continuously expanding our presence and dedicated to bringing in innovative technologies to our customers here. I believe that exiderdome's China tour has been strengthening the connections between Siemens A&D and Chinese industrial users". Before arriving in Beijing, the road show's China tour received more than 80,000 visitors. In China, A&D has more than 8,100 employees including 15 operating companies and more than 60 regional offices.

Appointment

BMW names new JV president

BMW has appointed Alfred Rupp as president and chief executive of its JV in China. The Germany-based auto manufacturer said Rupp, whose new position became effective as of March 1st, had previously been a senior vice president of the JV since June 2006. The JV, BMW Brilliance, is a partnership between BMW and Brilliance China Automotive Holdings Ltd and manufactures the BMW 3 Series and 5 Series in northeast China with an annual capacity of 30,000 units. Its overall sales in China reached 36,357 units last year, up 51 percent from 24,025 in 2005, making China one of BMW's fastest-growing markets.