Partnership Renegotiation with a Chinese State-owned Company
Partnership Renegotiation with a Chinese State-owned Company

Issue

After spending several years negotiating an exclusive partnership agreement with a Chinese state-owned company, our Client wished, one year after the JV signature, to lift the exclusive obligation, in order to support his own development with other potential partners.

Mission

Obtain, within 3 months, to lift the exclusive obligation, thereby enabling our client to enter into discussions with another partner.

Actions

1) The key objective of this mission was to develop an holistic approach in order to influence both the political and shareholding environments and the JV’s Chinese directors.
Thus, we convinced the parent company of the merits of the project and kept the MOFCOM informed to avoid any misunderstanding or potential deadlock.
2) At the corporate level,we established an ambitious strategic plan together with the Chinese side, then organized two board meetings of the JV’s directors in order to renegotiate the partnership agreement (contents of agreements, negotiation postures).

Results

No institutional or shareholder deadlock.
Prompt and effective review of the exclusive obligation, allowing to enter into discussions with other partners. These discussions subsequently resulted in an agreement on a new JV.
This renegotiation led to a better use of the JV’s resources on its main market.