On April 14, 2015, the Anti-monopoly Bureau of the Ministry of Commerce approved the prior notification of concentrations of undertakings concerning major asset restructuring of Fujian Nanzhi Co., Ltd. (600163. SZ). Jingtian & Gongcheng is the anti-monopoly legal counsel for Fujian Nanzhi in this deal.

Fujian Nanzhi and Fujian Zhongmin Energy Investment Co. Ltd. (“Zhongmin Energy”) are both controlled by Fujian Investment and Development Group Co. Ltd. The main business of Fujian Nanzhi is the production and sale of newsprint, writing paper, forest culture and management. Negatively impacted by the sluggish business, the company has been suffering huge losses.

The main business of Zhongmin Energy is the development, construction and operation of land wind power projects. The company devotes itself to investment in energy area, with focus on the development and construction of wind power projects. It has invested to build and operate several wind power projects, and is one of the leaders in the wind power industry in Fujian province.

This major asset restructuring deal takes the form of major asset swap, issuing shares to buy assets, as well as raising additional funds. Since the combined nationwide turnover within China of all the undertakings concerned in the preceding financial year reached the threshold stipulated in Provisions of the State Council on Thresholds for Prior Notification of Concentrations of Undertakings, a prior notification has to be filed with the Anti-monopoly Bureau of the Ministry of Commerce for approval before the deal can go forward.

Through studies on related regional markets and products of Fujian Nanzhi and Zhongmin Energy, Jingtian & Gongcheng provided full evidences and arguments, which were acknowledged by the Anti-monopoly Bureau of the Ministry of Commerce. The prior notification of concentration of undertakings got smooth approval and significant times were saved. It only took 25 natural days from filing to conclusion.