Tian Yuan Law Firm acted as lead counsel on a RMB63.5 billion (USD8.75 billion) merger between two subsidiaries of Shandong Weiqiao Pioneering Group, marking the largest M&A transaction to date by a privately owned enterprise in China’s A‑share market.
The transaction marks China Hongqiao’s strategic move to relocate its aluminium assets to the A-share market. China Hongqiao is the Hong Kong-listed subsidiary of Shandong Weiqiao Pioneering Group, which is a major Chinese conglomerate in the textile and aluminium sectors. Under this transaction, Shenzhen‑listed Hontron Aluminium Industry, China Hongqiao’s subsidiary, will acquire 100% of Hongtuo Industrial, China Hongqiao’s affiliate.
The SZSE’s M&A review committee approved the stock-for-stock merger on 10 December and the plan will begin after it receives approval from the China Securities Regulatory Commission.
Tian Yuan’s senior partner Li Yixing led the transaction team, while partner Gao Xia acted as the project manager. The team also included senior partner Liu Yan and partner Lu Lu.
The acquirer, Hontron Aluminum Industry, is an aluminium processing enterprise, and the target, Hongtuo Industrial Company, is a global leader in aluminium product manufacturing.
Hongtuo’s revenue in 2024 reached RMB149 billion, which far exceeds Hontron Aluminum’s revenue of RMB3.5 billion that year.
This merger, which has been likened to a snake swallowing an elephant, will significantly enhance the market value of Hontron Aluminum Industry and propel it to the forefront of the global sector.
