A European Hi-Tech firm with 1,500 employees approached ARACON for help after receiving a joint venture request by a Chinese industrial conglomerate. As a leading company in automation and autonomous driving (hardware and software for ADAS), our client possessed significant know-how. However, the firm was a small market player in terms of its market capitalisation. Hence, our client was aware of the tremendous opportunity of combining its in-house expertise in technology with the Chinese industrial giant’s market presence. Our task consisted in leading and coordinating the joint venture negotiations between a European family-owned business and a government-affiliated Chinese partner of a fundamentally different size and capitalisation.
We supported our client with fact checks, validation of Chinese data, and by sharing the intercultural know-how of our Chinese team. During the preparations for the negotiations, we drafted a joint venture structure that was favourable to our client and accepted by the Chinese negotiators. The transaction was completed within 12 months, starting with an introductory conversation and ending with the establishment of the joint venture.