China Mobile - SPD Bank stake acquisition		US$5.83bn
China Mobile acquires a 20% stake in Shanghai Pudong Development Bank. The two companies will form a strategic alliance to offer wireless financial services including mobile bank cards and payment services.
Firm	Client	Role
Shanghai United Law Firm Lead partner: Wang Feng	SPD Bank	PRC counsel
Haiwen & Partners	China Mobile	PRC counsel

China Mobile's latest business endeavour exemplifies the surprisingly far-reaching diversification ambitions of some large PRC companies. Seeking to expand into mobile financial services, China Mobile has agreed to buy a 20% stake in Shanghai Pudong Development Bank (SPD Bank) for US$5.83bn. The two companies will form a strategic alliance to offer wireless financial services including mobile bank cards and payment services.

SPD Bank was represented by Shanghai United Law Firm and partner Wang Feng lead the deal, which the said will be "a trigger for more of such alliances between telecommunication and financial services." Whether or not potential alliances go forward fully depend on evolving law and regulations, he added.

Shanghai United, which conducted due diligence, drafted and negotiated terms of the contract for the deal, is SPD Bank's long-term legal advisor. The firm first advised the bank in 1999 on its IPO and continued providing legal services around its equity and debt market deals and financing transactions.

China Mobile, the world's largest mobile carrier by number of subscribers, joins other telecommunications operators in Japan and South Korea that have agreements with banks to offer payment services via cellphones as a way to generate additional revenue.