OUR CASES
ISSUE

ChemChina’s $49 billion acquisition of Syngenta was China’s largest overseas acquisition and the third largest all cash transaction in the world. The transaction was strategically important for ChemChina, Syngenta and even China’s overall agriculture development. Therefore, both parties of the transaction, various regulatory authorities and stakeholders all had their considerations and concerns over the deal.

WHAT WE DID

DaoHe, as the policy and government communication advisor for the transaction, was closely involved in the whole negotiation and transaction process. It helped the client identify the concerns of key stakeholders and understand the potential risks related to regulators’ review and public opinion. DaoHe also developed a comprehensive communication plan and a complete set of internal and external communication materials which helped win support and approvals from regulators and stakeholders.

ISSUE

A global leader in IT industry received conditional approval from MOFCOM for its acquisition of a major global competitor. During the period when the conditions were valid, the company was found by MOFCOM that it was not following the rules on executing the conditions. The company was penalized publicly by MOFCOM, which resulted in financial losses, firing of related senior management and more importantly, serious tension between the company and key regulators. The company was concerned that this would endanger the approval of its future M&A transactions.

WHAT WE DID

The company approached DaoHe to help communicate with the regulatory authority and resolve the situation. DaoHe first helped the client understand the real reason of the issue, and then conducted proactive communication with decision makers and proposed and implemented remedy plan. The regulatory authority was satisfied with the client’s remedy actions and eventually lifted the conditions to the transaction.

ISSUE

A European company planned to sell its stocks in a joint venture to its Chinese partner and withdraw from the business. Considering the divestment could raise concerns from the government, employees, business partners and the public, the company asked DaoHe to develop a comprehensive stakeholder communication plan and provide support in communication with key regulators.

WHAT WE DID

Taking into consideration of the sensitivity around foreign companies' divestment in the current political environment, DaoHe developed detailed communication plan and materials that would address possible concerns from the stakeholders before and after the announcement. DaoHe also helped the client conducted effective communication with government agencies. The transaction eventually won support and approvals from all regulators and stakeholders and was completed successfully.

MERGERS & ACQUISITIONS
  • Anti-Trust Review
  • Political & Regulatory Risk Assessment
  • Regulator Engagement
  • Financial Communications
OUR CASES
  • Daohe Experience In Crisis Management

    Food safety: A world leading food company (client) was sued by its Chinese customer, who alleged that the raw materials provided by the client was deficient and led to serious food safety problems in its final products. The client was facing investigation by the government.

  • Divestment: Due to regulatory changes, the R&D operation of a global leading company was facing the risk of being shut down by the HQs due to policy compliance risk. However, if the company really shut down the R&D operation, it may lose the trust and confidence from key government stakeholders.

  • Double standards: A global leader in healthcare was criticized by name in a leading national media on its front page. The article questioned the company’s practice of "double standards" against Chinese patients and consumers in its product recalls and accused the company of “discriminating the Chinese”. The report was soon picked up by all sorts of media and quickly led to a crisis for the company.

  • Government investigation – compliance: After the GSK bribery scandal, another famous pharmaceutical company was facing Chinese government’s compliance investigation on its sales activities.

  • Government investigation – antitrust: A foreign infant formula company was investigated for alleged price-fixing practice.

  • Whistle-blowing: A former senior executive of a leading consumer-goods company threatened to expose the company’s non-compliance behaviors.

  • Litigation disputes: A multinational company was embroiled in a series of lawsuits with counterfeit product manufacturer and relevant government agency over a trademark dispute, drawing widespread attention from media.

  • M&A Communication Strategy and Implementation

    ChemChina’s $49 billion acquisition of Syngenta was China’s largest overseas acquisition and the third largest all cash transaction in the world. The transaction was strategically important for ChemChina, Syngenta and even China’s overall agriculture development. Therefore, both parties of the transaction, various regulatory authorities and stakeholders all had their considerations and concerns over the deal.

    DaoHe, as the policy and government communication advisor for the transaction, was closely involved in the whole negotiation and transaction process. It helped the client identify the concerns of key stakeholders and understand the potential risks related to regulators’ review and public opinion. DaoHe also developed a comprehensive communication plan and a complete set of internal and external communication materials which helped win support and approvals from regulators and stakeholders.

  • M&A Anti-trust Review

    A global leader in IT industry received conditional approval from MOFCOM for its acquisition of a major global competitor. During the period when the conditions were valid, the company was found by MOFCOM that it was not following the rules on executing the conditions. The company was penalized publicly by MOFCOM, which resulted in financial losses, firing of related senior management and more importantly, serious tension between the company and key regulators. The company was concerned that this would endanger the approval of its future M&A transactions.

    The company approached DaoHe to help communicate with the regulatory authority and resolve the situation. DaoHe first helped the client understand the real reason of the issue, and then conducted proactive communication with decision makers and proposed and implemented remedy plan. The regulatory authority was satisfied with the client’s remedy actions and eventually lifted the conditions to the transaction.

  • Divestment Communications

    A European company planned to sell its stocks in a joint venture to its Chinese partner and withdraw from the business. Considering the divestment could raise concerns from the government, employees, business partners and the public, the company asked DaoHe to develop a comprehensive stakeholder communication plan and provide support in communication with key regulators.

    Taking into consideration of the sensitivity around foreign companies' divestment in the current political environment, DaoHe developed detailed communication plan and materials that would address possible concerns from the stakeholders before and after the announcement. DaoHe also helped the client conducted effective communication with government agencies. The transaction eventually won support and approvals from all regulators and stakeholders and was completed successfully.