Norton Rose Fulbright is advising Vallourec, a French listed group, in connection with its mandatory general offer for the outstanding H Shares of Anhui Tianda Oil Pipe Company Limited, following the acquisition of its domestic shares pursuant to a sale and purchase agreement.

The transaction is the first time a non-PRC company has acquired the domestic shares of a PRC-incorporated Hong Kong listed company triggering a mandatory general offer for a company’s H shares. This has been made possible due to the loosening of restrictions relating to China’s steel policy to allow foreign owners to own more than 50% in steel manufacturers.

Anhui Tianda Oil Pipe Company Limited is a PRC incorporated company with its H Shares listed on the Hong Kong Stock Exchange. It will be delisted following the close of the mandatory general offer. The transaction, which was publicly announced on 3 February 2016, values Anhui Tianda Oil Pipe Company Limited at HK$1.7 billion.

Vallourec has held a significant stake in Anhui Tianda Oil Pipe Company Limited since 2011. The transaction will provide Vallourec with strategic and competitive advantages, in particular because Anhui Tianda Oil Pipe Company Limited’s steel manufacturing business complements Vallourec’s existing service offering.

Jun He is advising Anhui Tianda Oil Pipe Company Limited in respect of Hong Kong and PRC law issues associated with the transaction. Gide Loyrette Nouel AARPI is advising Vallourec SA on PRC law issues associated with the transaction.

The Norton Rose Fulbright team was led by Hong Kong partner Emma de Ronde, with assistance from Nick Wilson, Graeme Mackay, Wayne Lee, Lillian Chau and Daryl Poon.