Starting news article english 25 January 2013

Clifford Chance advises Santander on auto financing joint venture in China

Shanghai: Leading international law firm Clifford Chance has advised Banco Santander on its establishment of an independent auto financing joint venture with Chinese automobile manufacturer Anhui Jianghuai Automobile Co. (JAC) with an initial capital of around US$80 million. The joint venture, Fortune Auto Finance Co, recently received approval from the China Banking Regulatory Commission. Santander and JAC each have a 50% stake in the company.

Santander owns large banks in several European countries and in North and South America and is a leading car financier in Europe and the US. This deal gives it a foothold in China's automobile market.

"We are delighted to have assisted Santander on this exciting development in the Chinese market," said Emma Davies, the partner who led on the deal. "Santander will now be able to bring its car financing expertise to China, the world's largest market for automobiles with an estimated 19 million cars sold in 2012."

Emma was assisted by senior associate Chen Hao.

JAC is a Chinese automaker with a comprehensive list of automobile products and it is one of the leading manufacturers in some segments. Its sales exceeded 448,000 in 2012 through a network of more than 1,000 dealers.