Shearman & Sterling has advised Xi'an Aircraft Industry (Group) Company Ltd. (“XAC”) in its acquisition, through Future International Aviation Investment Co., Limited ("Future International"), a special purpose vehicle established by XAC in Hong Kong, of a 91.25% stake in FACC AG ("FACC") from Salinen Austria AG and ACC Kooperationen und Beteiligungen GmbH.

After the completion of the acquisition, an additional capital contribution by XAC will be made to increase the total equity of FACC from currently €40 million to €80 million.

This deal is the largest business merger and acquisition by a Chinese company in central Europe. The acquisition and subsequent capital increase will be the largest investment by a Chinese company in Austria.

XAC is a subsidiary of the Aviation Industry Corporation of China (AVIC), a Chinese state-owned enterprise and one of China's largest developers and manufacturers of large and medium-sized airplanes.

FACC is one of the world's leading companies in the development, design and manufacture of advanced fiber-reinforced composite components and systems for civil aircraft. The company works for all major aircraft manufacturers including Airbus, Boeing and Bombardier and, among others, has been involved in some of the world's most prestigious aircraft development programs such as Airbus A380, A350 XWB and Boeing 787 Dreamliner.

The Shearman & Sterling team representing XAC included partner Lee Edwards (Beijing–M&A) and associates Fang Xue, Xinmei Chen and Patrick Heid (all Beijing–M&A).