Davis Polk, Freshfields Lead China Supermarket Deal
Davis Polk & Wardwell and Freshfields Bruckhaus Deringer have the lead roles in a $748 million tie-up between Chinese supermarket operator Wumart Stores Inc’s and C.P. Lotus Corp., a similar chain partly owned by Thai conglomerate Charoen Pokphand Group.
As part of the deal, CP Lotus will take a 14 percent stakes in Beijing-based Wumart for $374 million while Wumart will take 10 percent stakes in CP Lotus for $71 million. Wumart will also pay $302 million for 36 CP Lotus stores to expand foothold in Northern China.
As of June 30 this year, Wumart operates 541 stores nationwide while CP Lotus has 55 stores in the country, mostly in Beijing.
Davis Polk Hong Kong partner Paul Chow is advising Wumart on the deal, while CP Lotus is being represented by Freshfields Hong Kong partner Edward Freeman.
Morrison & Foerster Hong Kong partners Jeremy Hunt and Marcia Ellis are advising Ascendent Capital, a China-focused U.S. private equity firm which helped orchestrate the deal and is investing $30 million in Wumart.