China Resources Gas Group (CR Gas) has acquired AEI China Gas for US$237.7 million. CR Gas is now expected to acquire the entire issued share capital of AEI China Gas from AEI Asia.

The acquisition enables CR Gas to expand its downstream city gas operations in mainland China. It has 73 city gas projects in 16 provinces. AEI China Gas operates 28 city gas projects, eight gas stations and four midstream gas transmission pipeline projects throughout China.

Hong Kong-listed CR Gas is controlled by state conglomerate China Resources Holdings.

The executive director of CR Gas, Ken Ong, said in a statement: "The acquisition is part of the ongoing expansion strategy of the group, with the aim of becoming the market leader in the downstream city gas industry in the foreseeable future.”

Advising CR Gas on Hong Kong and international law aspects was a Hong Kong-based King & Wood Mallesons team led by partners Raymond Wong and Sophia Wang. The acquirer’s Singapore counsel was Colin Ng & Partners, where Ong Wei Jin led the team. CR Gas' PRC and Cayman Islands counsels were Allbright Law Offices and Walkers, respectively. Clifford Chance acted for AEI Asia. ALB

Candice Mak is North Asia Editor at ALB. Follow her on Twitter: @ALB_Magazine.

Other related stories:

•  Competitive advantage: Mallesons adds Ashurst partner