King & Wood Mallesons (KWM) successfully assisted the Deng family, the actual controller of Chengdu Techcent Environment Co., Ltd. (Techcent Environment, stock code: 300362) in acquiring two segments of the global environment giant ALBA Group, namely its recycling growth and environmental services. The transaction is another big move of outbound investment taken by a western China-based company in the context of the One Belt One Road initiative.

Headquartered in Berlin, Germany, ALBA Group is one of the top ten global recycling and environmental services companies.  The smooth close of the acquisition is not only an important milestone in the Deng family’s comprehensive and in-depth cooperation with ALBA Group, but also marks the further expansion and diversification of the environmental protection business module controlled by the Deng family and Techcent Environment, now capable of world-class comprehensive environmental services in the fields of sewage treatment, sludge treatment, environmental management, solid waste treatment, and resource recycling.

Techcent Environment and the Deng family are among the KWM Chengdu Office’s key clients with over 10 years of close cooperation. KWM acted as legal counsel for the Deng family, the actual controller of Techcent Environment, providing legal advice on all aspects of the transaction, particularly smooth transfer of funds under the heightened regulatory environment, establishment of a domestic M&A fund, establishment of multiple SPVs through the M&A fund, and financing of the transaction both in China and overseas. At the same time, KMW proactively coordinated the client and a number of institutions including international law firms, financial advisors, financing advisors to ensure the timely and successful completion of the transaction, which was highly recognized by the Deng family and other advisors for the project. The project was led by KWM Chengdu office partners Zhang Ruji, Gao Chunkai, Liu Rong and Liu Feng, with close collaboration with KWM Hong Kong office partner Simon Yung, Frankfurt office partners Sandra Link, Rudolf Haas and their teams.

Zhang Ruji commented, “This is another landmark transaction achieved by KWM's cross-border team, which reflects the strength of KWM’s leading position as an international law firm in China and even the Asia-Pacific region. Led by KWM's global integration strategy and great platform, the Chengdu Office as KWM’s strategic stronghold in western China will continue to provide high-efficiency and high-quality outbound M&A legal services for enterprises in the western region and to facilitate their rapid development overseas.”