DLA Piper advises China Merchants Group on US$2.5 billion investment in China's JD.com logistic arm

DLA Piper has advised China Merchants Group (CMG) on its investment in JD Logistics, a subsidiary company of China’s largest retailer JD.com.

JD.com will continue to be the majority shareholder of JD Logistics, with a 81.4% stake after the completion of the deal, which is expected to close in the first quarter of 2018. Other investors include Hillhouse Capital, Sequoia China, Tencent, China Life, China Development Bank Capital FOF, China Structural Reform Fund and ICBC International, among others. The total amount raised is expected to be approximately US$2.5 billion.

Commenting on the transaction, Corporate partner Gloria Liu said: "This investment comes as China’s major e-commerce companies are looking to bulk up their logistics businesses to support their global expansion ambitions and boost revenues by offering services to third-party entities."

The DLA Piper team advising CMG was led by Corporate partner Gloria Liu and Registered Foreign Lawyer Jean Jiang.

JD.com is both the largest e-commerce company in China, and the largest Chinese retailer, by revenue. The company has the largest fulfillment infrastructure of any e-commerce company in China and is a member of the NASDAQ100 and a Fortune Global 500 company.

China Merchants Group is a leading state-owned conglomerate based in Hong Kong, under direct supervision of State-owned Assets Supervision and Administration Commission of the State Council. Founded in 1872, it is a pioneer in China's national industry and commerce.