King & Wood Mallesons (KWM) has advised an investment fund led by the Deng family, the controlling shareholder of Chinese environmental company Chengdu Techcent Environment Co Ltd (Techcent), on its joint venture with Berlin-based recycling company ALBA Group. The Deng family has invested in two of ALBA Group's business segments, namely “Services” (dual system/Interseroh) and certain parts of “Recycling”. Their shares in such segments of ALBA Group will amount to 60%.

Controlled by the Deng family, Techcent is an environmental company headquartered in Chengdu in the Sichuan province of China and is listed on Shenzhen Stock Exchange (300362.SZ). The company focuses on research, development, services and engineering in the field of environmental technologies. In March 2016, Techcent via an investment fund acquired Germany’s Bilfinger Water Technologies GmbH, one of the world-leading providers of plants, components and services with respect to water treatment technologies, showing the family's strong commitment to investment in the region.

ALBA Group is a global recycling specialist and commodity supplier. With its two brands - ALBA and Interseroh - it operates in Germany, Europe and Asia with around 7,500 employees.

The Deng family’s joint venture will consist of selected areas of ALBA Group’s business, including areas relating to technology recycling growth areas, such as electronic scrap and automobile recycling. The partnership will also include the services segment, which includes the dual system Interseroh, an important tool in the collection and recovery of packaging waste from Germany’s yellow bin / yellow sack initiative; and also sorting facilities for lightweight packaging.

The parties have agreed not to disclose details on the participation agreements signed on 1 October 2016. The deal is subject to regulatory approval.

The current transaction follows KWM’s role in advising Techcent on its acquisition of Bilfinger Water Technologies GmbH. The KWM team was again led by partner Michiel Huizinga.