Tian Yuan Law Firm has advised on a landmark RMB 63.5 billion (USD 8.75 billion) merger involving two subsidiaries of Shandong Weiqiao Pioneering Group, setting a new record as the largest merger and acquisition undertaken by a privately owned company in China’s A-share market.
The deal marks China Hongqiao Group’s broader strategy to reposition its aluminium assets within the domestic capital markets. The company is one of the key subsidiaries of Shandong Weiqiao Pioneering Group, a major Chinese conglomerate with extensive interests in textiles and the growing market of aluminium.
Explore- Most accurate data to drive business decisions with 50+ reports across the value chain
As part of the transaction, Hontron Aluminium Industry, a Shenzhen-listed unit of China Hongqiao, will acquire full ownership of Hongtuo Industrial, an affiliated company within the same group.
Regulatory progress has already been made, with the Shenzhen Stock Exchange’s mergers and acquisitions review committee granting approval to the share-for-share transaction on 10 December. Completion of the merger will proceed once final clearance is obtained from the China Securities Regulatory Commission.
Tian Yuan’s core advisory team handling the transaction was led by senior partner Li Yixing, partner Gao Xia, senior partner Liu Yan and partner Lu Lu.
From an operational standpoint, the merger brings together two businesses of markedly different scales. Hontron Aluminium Industry focuses on aluminium processing, while Hongtuo Industrial is recognised as a global leader in aluminium product manufacturing. Hongtuo reported revenue of RMB 149 billion (USD 20.5 billion) in 2024, compared with RMB 3.5 billion (USD 0.48 billion) generated by Hontron Aluminium in the same year.
Referred to as “a snake swallowing an elephant”, the transaction is expected to dramatically elevate Hontron Aluminium Industry’s market capitalisation and position the company among the leading players in the global aluminium sector once the merger is completed.
Don't miss out- Buyers are looking for your products on our B2B platform
Responses
