Clifford Chance, one of the world's pre-eminent law firms, said it had advised Saudi Public Investment Fund (PIF) on the acquisition of a significant minority stake in Korea's Posco Engineering & Construction Company (Posco E&C) for $1.1 billion.

PIF, the investment arm of the Saudi government, had recently bought a 38 per cent stake in the leading Korean engineering and construction company with operations in Asia, the Middle East, South America and Europe.

The parties are also presently considering their strategic options for Saudi Arabia including the potential establishment of an EPC (engineering, procurement and construction)/construction company in Saudi Arabia.
 
The Clifford Chance team, led by Omar Rashid (Partner, Riyadh), was supported by Hyun Kim (Partner, Seoul), Khalid Al Abdulkareem (Partner, Riyadh), Sahel Mughal (Senior Associate, Riyadh), Chee Kwan Kim (Counsel, Seoul), Dan Park (Associate, Seoul) and Jean-Francois Seguin (Associate, Riyadh).

Commenting on the deal, lead partner Rashid said: "We were delighted to work with PIF on this landmark transaction which represents the Saudi firm's first significant outbound investment."

"Given the strength and depth of our Saudi practice, together with our renowned capabilities in Seoul, Clifford Chance was ideally placed to provide PIF with seamless advice on both the Korean and Saudi aspects of the transaction," he added.
 
Commenting on the deal, Wassim Al Khatib, the head of Investment Banking for NCB Capital, said: "We are glad Clifford Chance worked as legal counsel on this important transaction given the firm's strength in the merger & acquisition (M&A) field out of its Riyadh office. They were always available and provided excellent and insightful advice throughout."

NCB Capital and JP Morgan were the joint financial advisors for PIF and Bank of America Merrill Lynch advised Posco and Posco E&C on the transaction.-TradeArabia News Service