Bucharest, 24 July 2023
Musat & Asociatii advised Geely Holding Group and Geely Automobile Holdings Limited (collectively referred to above as “Geely”) on the Romanian legal aspects of a binding 50/50 joint venture agreement with Renault Group to launch a new powertrain technology company that aims to become the global leader in developing, manufacturing, and supplying best-in-class hybrid powertrains and highly efficient ICE powertrain.
Musat & Asociatii has assisted Geely in all work relating to Romania, from extensive due diligence, corporate, real estate, employment, and environmental aspects, to transaction structuring and consumation.
Musat & Asociatii team was led by Gheorghe Mușat (Senior Partner), Paul Buta (Managing Partner) and Răzvan Stoicescu (Deputy Managing Partner) with Iulian Popescu (Deputy Managing Partner), Mihai Popa (Deputy Managing Partner), Monia Dobrescu (Partner), Andrei Ormenean (Partner), Alina Man (Managing Associate), Mădălina Trifan (Managing Associate), Dragoș Lungu (Managing Associate), Ana Maria Abrudan (Managing Associate), Manuela Lupeanu (Managing Associate), Julieta Sfeclă (Managing Associate), Robert Ürmösi (Senior Associate), Gabriel Oprea (Senior Associate) and Camelia Stanciu (Associate) playing a key role in the process.
“We are very proud to have represented Geely in this project. The mandate was complex, involving multiple jurisdictions and sophisticated legal issues, highlighting once more Musat & Asociatii’s unmatched capabilities in unique international deals and landmark projects”, said Razvan Stoicescu, Deputy Managing Partner.
The joint venture will be jointly led by Renault Group and Geely, with equal board members to formulate and execute strategies and set the direction for the joint venture. The initial organization will secure the continuity of the business with two operational centers in charge of the respective operations: Madrid for Renault Group and Hangzhou for Geely. An executive team will be based in the headquarters of the new company, which is intended to be established in the UK, to consolidate operations, build on synergies, and define future plans.
At launch, the new company is expected to supply multiple industrial customers including Renault Group, Geely Auto, Volvo Cars, Proton, Nissan, Mitsubishi Motors Company, and PUNCH Torino. In the future, the joint venture will be capable of providing end to end solutions in powertrain technologies to third-party car brands and will welcome partners to further strengthen the value chain.
Subject to applicable laws and regulations, Geely Auto and Renault will enter into a long term procurement agreement from the joint venture for ICE, hybrid and plug-in hybrids powertrains (engine and transmissions) for passenger vehicles. In addition, Renault will procure powertrains from the joint venture for light commercial vehicles as well as the development of hybrid batteries.
