Kirkland & Ellis and Gide Loyrette Nouel are advising on the first major acquisition by a Chinese brokerage of a foreign-owned competitor.
CITIC Securities Company Limited, China’s largest brokerage by market value and revenue, has agreed to pay $1.25 billion for Hong Kong-based brokerage CLSA Asia-Pacific Markets in two phases. The Beijing-based brokerage last week bought a 20 percent stake in CLSA from Crédit Agricole for $310.3 million, and is now exercising an option to buy the remaining 80 percent stake for $941.7 million. The option is subject to regulatory and shareholder approvals.
CITIC Securities is being advised by Kirkland & Ellis Hong Kong partner Nicholas Norris. Gide Loyrette Nouel is advising Crédit Agricole, and the firm’s team is being led by partner Guillaume Rougier-Brierre in Paris.
The acquisition of CLSA, which specializes in Asian equities, will bring CITIC Securities an international client list and offices in 15 Asian cities, plus London, New York, Boston, Chicago, and San Francisco.
Last year, CITIC Securities raised $1.8 billion via a share sale in Hong Kong. The company had planned to spend proceeds of its listing on overseas asset acquisitions. The broker was then advised by Baker & McKenzie, Latham & Watkins, and Jiayuan Law Firm.