Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados and Machado, Meyer, Sendacz e Opice Advogados have helped close the acquisition of a stake in Brazilian miner MMX by China′′s Wuhan Iron and Steel Group, WISCO.
"This was the largest investment ever made by a Chinese company in Brazil, and the transaction was very challenging, since different cultural backgrounds are still a major factor," says Mattos Filho partner Moacir Zilbovicius, who advised MMX. "The translation of Mandarin was much easier than understanding the messages sent while parties were negotiating. We are proud and honoured of being selected by EBX and MMX to represent them is this venture."
The deal was closed on 26 February for US$400 million, having first been announced in November.
The 20-year iron ore purchase and sale contract provides WISCO with half of the iron ore produced at the MMX-owned Sierra Azul mines, as well as the option to extend its shares to include half of the iron produced at MMX′′s Sudeste Bom Sucesso Mines.
"This was WISCO′′s first project under Brazilian law, and our firm was dedicated to bridging the gap between their understanding of how the project would be structured under Chinese law and the actual legal framework that had to be adopted under Brazilian law," says Machado Meyer partner Giovanni Biscardi, whose firm was advising WISCO for the first time.
"WISCO expressed a deep interest in understanding the legal details of Brazilian law and the regulations applied to the structuring of the deal, and we helped the company come to informed decisions in the negotiations," he adds.
China′′s third largest steel maker has plans to begin construction of a steel plant in Brazil′′s Acu port, which will be the first overseas project for a Chinese steel company. LLX, the logistics arm of EBX Group (which also owns MMX), has partcipated in this venture.
Counsel to EBX and MMX
·          In-house counsel - head of corporate finance Paulo Gouvea, Clarissa Rebello and Joel Renno Jr
·          Mattos Filho, Veiga Filho, Marrey Jr e Quiroga Advogados
Partners Moacir Zilbovicius and Paula Vieira de Oliveira and associate Bruno Rieger Salzano
Counsel to WISCO
·          In-house counsel - General counsel Liu Xin Quan and Xiao Jingfang
·          Machado, Meyer, Sendacz e Opice Advogados
Partner Giovanni Cardoso Leite Biscardi and associates Cristiana Rebelo and Mariana Rodrigues Meditsch
(Latin Lawyer 03.03.2010)
(Notícia na Íntegra)