Global has recently represented crude oil giant Sinopec in its 50/50 joint venture with Saudi Basic Industries Corporation (SABIC). King & Wood and Jun He were also instructed on the deal – by the borrowers and lenders respectively.

The JV will see a new petrochemical complex built in Tianjin, upgrading the chlorine-alkaline industry in the region and promoting economic development of the New Binhai District and Tianjin municipality. By 2015, China will account for 25% of global demand for key petrochemical products, according to Exxon Mobil Corp.

Earlier this year, Sinopec made two other major overseas acquisitions – Addax for US$8bn and Asset Management Company for US$500m. Guantao assisted Sinopec in the Asset Management acquisition and Vinson & Elkins advised the company on its acquisition of Addax.  Global has had a long-term relationship with Sinopec and has a special team dedicated to advising the company.

According to Sinopec’s general counsel, Zhang Lianhua, the in-house legal team runs every overseas M&A transaction from due diligence to completion, handling most of the PRC legal matters.

The company doesn't have a fixed panel of external legal advisors, preferring to engage law firms in accordance with the needs of specific projects and the requirements of local law and regulations. Mostly Sinopec will hire international firms: in the past five years, the three law firms most regularly used have been Herbert Smith, Vinson & Elkins and Andrews Kurth.

White & Case has been advising SABIC since August 2007 when the corporation signed a letter of intent with Sinopec. “This joint venture project is a strong indication of the trend to increase foreign investment activity between Saudi Arabia and China,” said Steve Payne, a partner at White & Case.

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• Guantao and Herbert Smith assist Sinopec in US$500m asset acquisition