Among international law firms in China, ‘outbound’ work – representing Chinese companies looking abroad for investments and acquisitions as opposed to multinationals entering the Chinese market – has long been hailed as the next big thing. But the rejection this week of the largest such outbound China deal yet highlights continuing challenges to growth in the practice.
Anglo-Australian mining giant Rio Tinto on Thursday (4 June) pulled out of a deal with the state-owned Aluminum Corporation of China (Chinalco), which had offered to pay $19.5bn (£12.2bn) for an 18% interest in Rio and stakes in copper, aluminum and iron mines. Other major Rio shareholders had criticised the transaction as a sweetheart deal for Chinalco, while it also become a lightning rod for political opposition concerned about allowing the Chinese Government such a major role in Australia’s mining sector.
