Clifford Chance has advised The Carlyle Group on its joint acquisition with Huo's Group of Shell's 75% stake in Tongyi Lubricants, a joint venture between Shell and Huo's Group. The deal is subject to regulatory approvals and is expected to be completed by the end of 2015 or in early 2016. PRC firm Han Yi Law Offices also advised Carlyle on the transaction.

Tongyi Lubricants is a prominent Chinese lubricants supplier with blending plants in Beijing, Xianyang in Shaanxi province and Wuxi in Jiangsu province. Shell acquired its 75% stake from Huo's Group in 2006 and Tongyi has become the number one domestic private brand in China's lubricants sector. Carlyle's equity investment for the transaction will come from Carlyle Asia Partners IV.

Lead partner on the deal, Simon Cooke said, "We are very pleased to assist Carlyle on yet another strategic acquisition in Asia and another example of the growing trend of leveraged buyouts in China. Notwithstanding the turbulence in the markets of late, there remain sectors which present strong investment opportunities due to the continued growth of the middle class in China."

Simon was supported by counsel Paula Liu and senior associate Gwenlynne Lee. The finance team consisted of partners Anthony Wang and Matthew Truman, and senior associates Clara Shirota and Clare Marrinan. The anti-trust team included partner Richard Blewett, senior associate Angie Ng and associate Jeff Liu.

The Asia Pacific team recently advised Carlyle on its investment in Hong Kong-listed AsiaSat and on its acquisition of ADT Korea from TYCO for US$1.93 billion.