Burges Salmon advises on the acquisition of a majority stake in Henry Bath from Mercuria

Burges Salmon has worked with Chinese law firm Fangda Partners on a multi-jurisdictional transaction involving the acquisition by CMST Development Co of a majority stake in Henry Bath & Son Limited.

21 September 2015

Lawyers from  Burges Salmon have worked with Chinese law firm Fangda Partners on a multi-jurisdictional transaction involving the acquisition by CMST Development Co of a majority stake in Henry Bath & Son Limited from commodities trader Mercuria Energy Group Ltd.

The Burges Salmon team, which included Corporate, Tax, Commercial, Real Estate and Employment lawyers, advised on the UK aspects of the acquisition, supporting Fangda alongside law firms in the US, Singapore, and the Netherlands. CMST, which is listed on the Shanghai Stock Exchange, has agreed to pay $60 million for a 51 per cent stake in Liverpool-based Henry Bath, which is one of the world's oldest metals storage firms. The transaction is subject to regulatory approvals in China.

CMST is the first Chinese organisation to enter the London Metal Exchange's storage network and highlights the increasing influence that China has in trading on the international metals markets.

Mercuria acquired Henry Bath in 2014, comprising part of its $800 million takeover of the physical commodities business owned by JPMorgan Chase & Co. Established in 1794, Henry Bath is a founder member of the London Metal Exchange and is licensed by commodity exchanges including LME, ICE, LIFFE and CME to issue Exchange-traded Warrants for metals and commodities we store around the world. It is the fourth largest warehouse operator in the LME's global network and provides its clients with a global platform of warehousing and logistics capabilities.

Head of the Corporate team, Richard Spink, who led the Burges Salmon team said: 'We were very pleased to have the opportunity to work closely with Fangda Partners on this deal, which marks a significant development in the metals trading world.'

Key contact

Richard Spink

Richard Spink Partner

  • Head of Corporate
  • Mergers and Acquisitions
  • Private Equity

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