Global legal practice Norton Rose Fulbright has advised German paragon AG on its joint venture for car electronics and sensor production and distribution with Chinese Jiangsu Riying Electronics Co., Ltd. (R&Y). The international team handled both German and P.R.C. matters in its formation of a 65 percent (paragon AG) – 35 percent (R&Y) joint venture. The purpose of the joint venture is the production and distribution of certain electronic and electro-mechanic devices for use in automobiles – especially air quality sensors and other systems to enhance in-car air quality – as well as instruments and their respective components, in the P.R.C. The establishment of the joint venture is subject to customary regulatory approvals.

Listed in the regulated market (Prime Standard) of Deutsche Börse AG in Frankfurt, paragon develops, produces, and sells advanced automotive electronics solutions. paragon’s portfolio includes products in the business segments sensors, acoustics, cockpit, electro-mobility, and body kinematics. paragon has several branches throughout Germany and subsidiaries in Austin and Shanghai.

R&Y is a well-known Chinese developer, manufacturer and distributor of electronic solutions for the automotive and motorcycle industry, including sensors, automotive washer systems, electronic control systems, connectors, wiring harness systems and injection molded plastic parts.

Norton Rose Fulbright has recently advised on a number of German-Chinese transactions. The German offices advised, for example, Chinese solar module manufacturer Astronergy on the acquisition of the production site of Conergy SolarModule in Frankfurt/Oder (Eastern Germany); German household appliances distributor AWECO on the sale of its entire business operations to Chinese Zheijang Sanhua group; as well as German private equity fund Perusa on the sale of Buderus Feinguss to the Chinese precision casting group Impro Precision Industries.

The Norton Rose Fulbright team advising on the joint venture was led by Frank Regelin, assisted by Christoph Naumann (both Frankfurt) as well as Lynn Yang and associate Tony Zhong (both Shanghai), all corporate, M&A and securities.