Bucharest, 16 February 2017 - Mușat & Asociații consolidates its collaboration with Emerson by the assistance provided to Emerson Oradea S.R.L., one of the Romanian subsidiaries of Emerson Electric, world leader in the field of production and technology, in respect of the separation of the activities related to the Leroy – Somer and Control Techniques divisions in Romania followed by their transfer to the Japanese company Nidec Corporation. The multi-jurisdictional transaction reached the amount of approximately USD 1.2 billion.
Emerson, by the Leroy - Somer and Control Techniques divisions, has been over the last 30 years the most important manufacturer and provider of alternators, electric engines and command systems, with approximately 9,500 employees all over the world. The combined revenues of the two divisions totalled in 2015 approximately USD 1.7 billion at world level.
The Mușat & Asociații teams involved in the project provided advice in all the stages prior to the business transfer process, as well as in those related to the completion and fulfilment of the conditions necessary for the takeover of the business by Nidec Corporation.
Iulian Popescu, Partner with Mușat & Asociații and coordinator of the entire project stated: “We are thrilled of the close collaboration we had with the Emerson and Nidec teams, as well as of the perfect manner in which this transaction was assisted both internally, and internationally, with the help of our colleagues from Baker McKenzie, Sidley Austin and Kinstellar. The irreproachable involvement of the Mușat & Asociații multidisciplinary teams in all the aspects related to structuring and implementation was constant during the entire length of this complex transaction, performed in parallel to other international transactional projects led by Mușat & Asociații. Such challenging period helped us test the level of planning and correlation of our teams, in order to always anticipate the punctuality and efficiency requirements of our clients.”
The Mușat & Asociații team, coordinated by Iulian Popescu (Partner), which was made up of Ileana Lucian (Partner), Andrei Ormenean (Senior Associate), George Ghitu (Associate), Alina Man (Associate), as well as Răzvan Graure (Tax Partner) and Roxana Dobrogeanu (Tax Manager), assisted Emerson in respect of all the aspects related to the transfer of the 2 divisions from Emerson S.R.L. to Emerson Oradea S.R.L., but also to the completion of the transfer to Nidec Corporation. In this multijurisdictional project, Muşat & Asociaţii law firm provided legal and fiscal assistance in the workflows of corporate law, real estate and constructions, labour law, fiscal law and repatriation of profits, IT and IP.
In parallel, the team coordinated by Monia Dobrescu (Partner), which was made up of Alina Solschi (Senior Associate) and Alina Tacea (Senior Associate), ensured the performance of the legal due diligence process prior to the business transfer.
“It was a complex and elaborate process, given the width and characteristics of the Emerson business, which many times involved the compliance with some tight deadlines, but the collaboration with the external attorneys was excellent. Along the way, the Muşat & Asociații team proposed innovative solutions meant to protect the client’s interests, without reducing however the fluidity of the transaction. We had the entire support of the Emerson team, both in respect of the transparency and efficiency with which the information was made available to us, and of the subsequent involvement in the implementation of the proposals of the Mușat & Asociații team”, highlighted Monia Dobrescu, Partner.
Muşat & Asociații is one of the market leaders of the Romanian Mergers and Acquisitions market, being involved over time in several of the largest transactions concluded at local level. Among the recent projects we can list: assistance provided to Emerson in relation to the sale of the Network Power business to Platinum Equity investment fund; legal assistance provided to Premier Capital in the takeover of the local operations of the American group McDonald’s; legal assistance provided to CRH (Ireland) company in relation to the acquisition of Lafarge assets in Romania, as part of a global transaction in amount of EUR 6.5 billion; assistance to Electrica SA and the underwriting syndicate (made up of Raiffeisen Capital & Investment, BRD, Société Générale, Citigroup and Swiss Capital) in the conduct of the initial public offering (IPO) for the sale of shares, representing 105% of the share capital of DFEE Electrica, in the greatest listing up to this point in Romania (EUR 440 million), successfully concluded in July 2014; Sterling Resources Ltd.in the transfer process of the 65% shareholding in the deep water area of the Midia XV perimeter of the Black Sea, to ExxonMobil Exploration and Production Romania and OMV Petrom SA; Industrial Bank of Korea in respect of the financing of 5 photovoltaic projects, developed in 3 different regions of Romania; China Development Bank in relation to the financing of two photovoltaic power plants, a top Chinese consortium in relation to the participation and development of an important electricity production project.