Morrison & Foerster's China M&A team, in the latest of a string of high-profile M&A transactions, is representing UPS in its US$100 million acquisition of the PRC-based, international express package delivery business of Sinotrans Air Transportation Development Co., Ltd. Sinoair is listed on the Shanghai Stock Exchange and is controlled by Sinotrans, an HKSE-listed PRC State-owned enterprise. The definitive agreement for this transaction was signed on December 1, 2004. The transaction will be completed through a series of closings over the next two years. This acquisition by UPS is the initial step in its plans to significantly expand its operations in China and helps further solidify the UPS/MoFo client relationship by expanding this relationship in China, UPS's key growth market in Asia.

The transaction was executed on a very short timetable (for the PRC), presents novel and complex regulatory issues, and requires the approval of SASAC, a PRC regulatory body that administers the sale of State-owned assets. The initial closing is expected to occur before year-end. Steve Toronto, the managing partner of the Beijing office, led a cross-office China team of attorneys based in Hong Kong and Beijing.