Rothschilds are firmly embedded in China
Rothschild’s long-standing presence in China dates back to 1838, and we were one of the first business institutions from the Western world to re-establish relations after 1953.
Our offices in Beijing, Shanghai and Hong Kong give us direct access to the Chinese market. Our locally based team of advisory bankers commands an in-depth knowledge of the country’s economic development and the challenges facing its industries.
Through many years advising China’s multinationals, state-owned and private enterprises, we have developed an exceptional understanding of the local regulatory and market environment. Our team is skilled at bridging the cultural gaps that sometimes exist between the managements of foreign and local companies.
Senior bankers lead every assignment from start to finish, ensuring that all clients benefit from Rothschild’s intellectual capital and global network of contacts and industry sector expertise.
In the wider north Asia region, we advise on cross-border transactions concerning Korean companies through our strategic partnership with Samsung Securities, and on those concerning Japanese companies through our strategic partnership with Global Advisory Japan.
Our notable assignments include advising the acquisition by Geely Auto of Volvo, the merger of China Netcom and China Unicom, the sale of Lehman Brothers’ Asian assets to Nomura, and Rusal’s IPO on the Hong Kong Stock Exchange.
When Jennifer Yu, Rothschild’s top executive in China, wanted the firm to advise Chinese carmaker Zhejiang Geely on its bid for Volvo, some colleagues at the bank’s headquarters in Europe were skeptical. A senior banker asked her how a “mouse” like Geely could swallow an “elephant” like Volvo. “There’s a dragon behind this mouse, and it’s China,” Yu recalls answering. She and the team handling Geely won the argument, and Geely won the bidding. It completed the takeover of Volvo from Ford Motor (F) for more than $1.3 billion on Aug. 2.
Rothschild, the more-than-200-year-old family-controlled banking dynasty, is making a big move in China, and Yu is leading the charge. It plans to add 15 merger advisers there by March, giving it 55 in all, more than any foreign investment bank, says Olivier Pecoux, co-chief executive officer of Rothschild. Today, the merger business in China is still relatively small. So far this year, China has accounted for about 9 percent of the $1.1 trillion in deals around the globe, according to data compiled by Bloomberg. The potential, though, is enormous. China has $2.5 trillion in untapped foreign currency reserves and is mandating that state-owned companies expand abroad to secure natural resources such as oil and metals. “The economic balance of power has already changed, and it is moving to the East,” says Yu, whose title is head of greater China. “There will be an increasing number of Western companies selling assets to China.”
The firm hopes to build on the momentum of the Geely deal, which catapulted it to No. 8 among merger advisers in China so far this year, from 19th in 2009, according to data compiled by Bloomberg. That’s nine places higher than Rothschild’s ranking in North America, where it employs 150 bankers. Rothschild this year helped Royal Dutch Shell (RDSA) on its joint $3.1 billion bid for Brisbane (Australia)-based Arrow Energy with PetroChina (PTR), (RDSA) China’s biggest offshore energy explorer. Rothschild is advising Beijing-based Citic Securities, the mainland’s largest brokerage by market value, on creating a global equity brokerage with France’s Crédit Agricole. “Clearly, under the leadership of Jennifer, and with the support of the senior management team, we are making meaningful progress in China,” Chairman David de Rothschild writes in an e-mail.
thanks to rev17 for the links..
just in case you thought china isnt owned as well by the roths..they are..none will do business unless the house of the red shield is involved..