Press Release

Morrison & Foerster Advises Chinese State-Owned Rolling Stock Manufacturer CNR Corp. in US$26 Billion Merger with CSR Corp.

Deal creates industrial giant in global rolling stock manufacturing industry; China aiming to increase exports of train cars and engines to emerging markets; MoFo corporate partner Charles Chau leading deal team

02 Jun 2015

HONG KONG (June 2, 2015) – In a groundbreaking merger creating an industrial giant in the world’s rolling stock manufacturing industry from two state-owned enterprises in China, Morrison & Foerster has advised China CNR Corporation Limited in its US$26 billion merger with CSR Corporation Limited.

Hong Kong-based corporate partner Charles Chau led the deal team on behalf of CNR, which in 2012 was the world’s largest railcar maker by revenue. The merged company will be known as CRRC Corporation Limited. The registration procedures of the merged company were completed on June 1, 2015.

“The new entity is on the cutting edge of an effort by the Chinese government to consolidate state-owned enterprises (SOEs) in a variety of industries.  The combination of CNR and CSR creates a major new global player in the rolling stock business – which remains a critical part of the world’s supply chain,” said Mr. Chau of Morrison & Foerster.

“Chinese companies have aggressively marketed their railcar industry in emerging markets worldwide, and this tie-up will likely increase their competition with the top players in the industry, including those in Europe and the U.S,” he added.  “Consolidation of SOEs in China - to make them more flexible and market-responsive - is an ongoing trend. We’re confident we’ll see more of these enterprises emerging in diverse industries in China and hope to play a central role in their formation.”

The tie-up is the first between companies simultaneously listed on the Hong Kong and Shanghai Stock Exchanges. Morrison & Foerster’s Hong Kong capital markets group also advised CNR on its US$1.2 billion Hong Kong IPO in May 2014.



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