The Legal 500

Baker & McKenzie’s ‘huge and well-diversified platform’ and ‘extensive background in the region’ results in a consistent flow of M&A representations. One highlight was advising ArcelorMittal on its two steel joint ventures with the Valin Group, cumulatively worth €4bn. The practice also completed its representation of State Grid Corporation of China in its $3.95bn deal gaining the rights to operate the Philippines’ electricity grid. Marco Marazzi in Shanghai and Stanley Jia in Beijing are two key partners.

With a ‘long history in China and a great M&A team’, Clifford Chance LLP secured a number of the market leading China-outbound deals of 2008, including advising Chinalco on its (ultimately unsuccessful) $19.5bn strategic investment in Rio Tinto. The team also advised China Oilfield Services on its $2.5bn acquisition of Oslo-listed Awilco Offshore. Clients single out Shanghai-based Emma Davies as ‘a really outstanding practitioner’.

Freshfields Bruckhaus Deringer is widely commended for ‘good Hong Kong public M&A and excellent service in the PRC’. In 2008, the practice acted as Hong Kong legal advisor for China Unicom on the $6.4bn disposal of its CDMA business to China Telecom, and on its $23.8bn merger with China Netcom. The practice also acted for Huiyuan Juice with respect to the $2.5bn takeover bid by Coca-Cola. Teresa Ko, who leads the practice out of Hong Kong, ‘is a skilful negotiator and excellent coordinator’, while Grace Huang is praised for her ‘extremely strong technical ability’.

Linklaters receives praise for ‘comprehensive industry knowledge’, ‘a strong base in China’, and ‘impressive inbound and outbound profiles’. The team advised China Netcom and China Telecom on Hong Kong law in their respective $23.8bn and $15.8bn deals with China Unicom as part of China’s telecom industry restructuring, as well as advising Rio Tinto on Chinalco’s $19.5bn offer to enter into strategic partnership. The practice also advised RBS on its HK$18.4bn sale of a 4.3% stake in Bank of China. Newly-promoted Asia managing partner, Zili Shao, is ‘very active and very impressive’.

O’Melveny & Myers LLP’s China practice emphasises early-stage and private equity representation, which leads to a high volume of corporate transactions as investors seek an M&A exit. Clients laud the team’s ‘excellent service and good knowledge of PRC law and regulation’. Asia managing partner Howard Chao splits his time between China and Silicon Valley, and is ‘well-known for his depth of experience’. Walker Wallace in Shanghai is praised for ‘strong negotiation skills, responsiveness and tenacity’.

Shearman & Sterling LLP has ‘one of the top transactional practices in China’, with an impressively balanced record of inbound and outbound work over the past five years. In 2008, the team acted as US counsel for China Netcom in its $23.8bn merger with China Unicom, and advised PetroChina International Singapore on its $1bn bid for a 45.5% interest in Singapore Petroleum. Another highlight was representing SINA in its $1.4bn acquisition of the assets of Focus Media’s digital out-of-home advertising networks. Beijing-based practice head Lee Edwards is recommended as ‘a terrific M&A lawyer’.

‘First port of call for deals in China’, Skadden, Arps, Slate, Meagher & Flom LLP added a Shanghai office to its China platform in February 2008. Foremost among the year’s mandates was the representation of Coca-Cola in its $2.5bn bid for Huiyuan Juice, which was controversially blocked under the new anti-monopoly law. The team also advised Nomura Holdings on its acquisition of Lehman Brothers’ Asia-Pacific franchise, and Pacific Century Regional Developments as a joint offeror with China Unicom, in their $2.1bn cash offer to privatize PCCW. China practice leader Gregory Miao is ‘highly rated’.

According to clients, Allen & Overy LLP ‘provides excellent technical legal advice, but also bring a practical, business approach to each engagement’, adding ‘a solid understanding of the technology industry internationally and in China’. The practice advised Franshion Properties on its $1.5bn acquisition of China Jin Mao Group. Another highlight was representing Fortis in the €2.2bn sale of 50% of Fortis Investment Management to Ping An Insurance. Beijing partner Thomas Jones is praised as ‘a superb lawyer and business counselor’.

Notable for its high volume of transactions, DLA Piper is appreciated by clients for its ability to ‘offer vital support from a very early stage’. Highlights include representing Ping An Insurance in its $3.2bn acquisition of Shenzhen Development Bank, and advising China Merchants Bank in its $4.7bn acquisition of Wing Lung Bank. The team also advised Heckmann on its $625m acquisition of China Water Bottle and Drinks. Beijing managing partner Lui Wei is ‘very good - a valuable advisor’.

‘Superior in skill, resources, speed and government connections’, Gide Loyrette Nouel A.A.R.P.I. impresses with the ‘ability to propose wise, practical solutions in a highly complex environment’. The team advised Taiyuan Iron & Steel in its acquisition of mining rights in Turkey, and on the inbound side advised on joint venture projects initiated by Areva and Veolia. Warren Hua and Marianne Ramel are commended as ‘prompt, highly skilled and savvy’, while David Boitout is praised for ‘good industry knowledge and rich experience’.

Though better known for capital markets prowess, Herbert Smith LLP also has a potent M&A practice, with particular expertise in the energy sector. The team represented China Enterprise Capital in its $600m sale of Giant Field and Power Field to Nubrands Group Holdings, and advised Huaneng Power International on a $344m transaction acquiring significant interests in YangLiuQing Co-generation and Beijing Cogeneration. Beijing-based Tom Chau is ‘particularly good for public M&A’.

Recommended for ‘deep legal and commercial knowledge’ and ‘great response times’ Paul, Hastings, Janofsky & Walker LLP has a busy M&A practice with a bias towards private equity. Highlights include advising Poly (Hong Kong) Investments in its acquisition of Shenzhen Poly Investments, and advising Softbank in its acquisition of a majority interest in Alibaba.com Japan. Clients appreciate Toshi Arai as a ‘rare Japanese lawyer resident in and committed to the PRC’, while David Wang and Milton Chou are singled out as ‘incredibly responsive, very detail-oriented, and commercial’.

Clients vociferously praise Paul, Weiss, Rifkind, Wharton & Garrison LLP’s ‘exceptional team’ - ‘they know their field well, and find business solutions to problems’; ‘no effort is too much’. TMT is a specialty which provides a good resource of M&A deals. The team acted for Microsoft in connection with a joint venture with Tata Consultancy Services, which will engage in information technology consulting in China. China practice head Jeanette Chan is ‘knowledgeable, experienced, pragmatic, well-connected, and resourceful’.

Sidley Austin LLP ‘has quality throughout the world and the Asian practice is no exception’ - the China team ‘provides excellent service, is very efficient and accurate and their legal analysis stands firm against challenges’. Inbound investment characterizes the M&A practice: in 2008, the team represented a Fortune 500 European company in a $500m investment in a multi-site wholly owned foreign enterprise in the chemicals, coatings and pharmaceuticals sectors. Shanghai head Tang Zhengyu is singled out as ‘a leading lawyer - professional, responsive and knowledgeable’.

Simpson Thacher & Bartlett LLP has ‘a very strong China M&A team’ which garners significant mandates in both the public M&A and private equity spheres. The practice advised Chinalco on the US aspects of its $19.5bn partnership bid with Rio Tinto, and acted for Focus Media in the $1.4bn sale of its out-of-home advertising business divisions to SINA Corporation. Beijing head Douglas Markel is rated as ‘a really good transactional lawyer’.

Sullivan & Cromwell LLP is ‘good for US securities and M&A’ and ‘excellent for outbound work in particular’, with sovereign wealth fund China Investment a key client. The China team acted as US counsel to China Unicom in its $23.8bn merger with China Netcom and $15.8bn asset sale to China Telecom. Chun Wei is the China head - she is ‘terrific’, according to clients.

The ‘totally competent’ M&A team at Weil, Gotshal & Manges represented Johnson & Johnson in the 100% acquisition of Beijing Dabao Cosmetic Products. Another key engagement was representing MassMutual Financial in its joint venture with SGCC to build a life insurance company in China. China leader Steven Xiang is recommended as ‘business savvy, quick on his feet, good at meetings and totally bi-cultural’. SuatEng Seah in Shanghai is also singled out as ‘very easy to work with and extremely responsive’.

Davis Polk & Wardwell’s hire of Howard Zhang from O’Melveny & Myers LLP in 2008 gave additional impetus to its already impressive M&A practice. One highlight of the year was advising COFCO, China’s largest national agricultural trading and processing company, in connection with its acquisition of 4.95% of US-based Smithfield Foods.

Deacons’ Asia network is not included in the Australian firm’s 2010 merger with Norton Rose LLP - how this will affect the three offices in China remains to be seen. In 2008, the firm represented Toshiba Elevator and Building Systems in its acquisition of a 49% interest in Chevalier, and the subsequent restructuring and spin-out of Chevalier’s non-elevator businesses. Edwarde Webre is recommended as a ‘very experienced M&A lawyer, particularly skilful at drafting and negotiation’.

Clients rate Dechert LLP (Beijing Representative Office) for ‘in-depth knowledge in industry and legal areas’ and ‘impressive responsiveness’. Representations range from media and entertainment to industrial and manufacturing, though generally with an inbound theme. Henry Wang in Beijing is ‘particularly excellent’ - ‘he provides timely, articulate counsel that advances transactions in keeping with the business goals’.

The energy and automobile sectors are particular specialties of Jones Day’s ‘outstanding’ China M&A practice. The team is among the market leaders in volume of transactions. One highlight was representing a leading multinational company in making $300m of strategic investments in steel cord and wire production. John Kao in Beijing is praised for ‘fast and competent answers’.

Traditionally more active in China in capital markets transactions, Latham & Watkins LLP’s M&A practice also has considerable strength, particularly in the energy sector. The hire of seven partners from Allen & Overy LLP makes the practice a one-stop shop for US and Hong Kong M&A advice. In 2008, the team advised Lion Power Holdings on its $2.5bn acquisition of Senoko Power.

Lovells LLP’s M&A industry strengths include TMT, real estate and financial services. Highlights of 2008 included advising HongKong Electric on its $733m acquisition of Outram, and representing SoftBank in its $400m acquisition of 14% of internet operator Oak Pacific Interactive. Robert Lewis in Beijing and Andrew McGinty in Shanghai are the leading individuals.

Rated by clients for ‘excellent response times and industry knowledge’, Mallesons Stephen Jaques performed well in 2008, capitalising on its position as an Australian firm well-situated to assist Chinese clients with outbound investment. Key representations included that of Hunan Valin Iron & Steel in its A$1.3bn acquisition of 17.4% of Fortescue Metals, Australia’s third largest iron ore producer. John Shi in Beijing is considered ‘particularly good’.

Morrison & Foerster lost former mainland managing partner Steve Toronto to the in-house team at the NBA - how the M&A practice will fare remains to be seen. The practice made some redress with the hire in Beijing of Sherry Yin from Orrick, Herrington & Sutcliffe LLP. One highlight of 2008 was the team’s representation of ChinaHR in its $174m sale to Monster Worldwide.

Justin Wilson returned to Norton Rose LLP’s Shanghai office from Clifford Chance LLP in 2008 - clients recommend him for his ‘speed and efficiency at understanding what really matters’. He adds strength in financial services and distressed M&A. The practice worked on key matters such as China Development Bank’s increased investment in Barclays.

Simmons & Simmons augmented its China M&A practice with the hire of Damien Bailey from Minter Ellison. Clients rate Bailey as ‘easy to work with and responsive’. During the course of the year, the team represented PCCW on various strategic acquisitions and investments, and advised a leading Chinese oil company on a $3.8bn takeover.