White & Case Advises Sberbank on Purchase of GM’s Opel

Moscow, Frankfurt, London and New York, September 14, 2009 – Global law firm White & Case LLP advised Sberbank, the largest bank in Russia, Central and Eastern Europe, on a joint acquisition, together with Canadian auto-parts manufacturer Magna International, of a 55 percent interest in Adam Opel GmbH from the US automobile producer General Motors Company.

The Firm’s role on the deal, considered by many experts the most complex international deal of 2009, illustrates the Firm’s strong automotive sector expertise, as well as the depth and breadth of its M&A and tax capabilities. With the team involving 25 lawyers from four countries, this is a transaction that plays to the Firm’s international strengths.

The deal was negotiated over the course of several months, with negotiations taking place in Germany, the U.S., Switzerland, Canada and Russia. The General Motors board gave its final seal of approval on 10 September 2009.

Under the agreement, the Magna-Sberbank consortium will own a 55 percent interest in Opel, with General Motors retaining a 35 percent stake, and Opel employees holding the remaining 10 percent. The deal includes an equity component of €500 million provided by Sberbank and Magna. The connection between Opel, Magna and Sberbank provides an additional dimension for the future growth of Opel and the development of the Russian automobile industry.

“It is a privilege to work on a transaction that could bring about a new era of cooperation between Russia and Western Europe, expanding it beyond the traditional energy and commodity sectors,” said Hermann Schmitt, the executive partner of White & Case’s Moscow office who led the Russian team on this project. “Our unique ability to field a strong team composed of German, Russian and English M&A and tax lawyers with significant automotive experience, both in Moscow and in Frankfurt, enabled us to contribute to the success of this deal going forward,” he added.

Markus Hauptmann, White & Case’s Frankfurt-based partner who led the Firm’s German team on this transaction said: “It is very satisfying to have such depth of knowledge and understanding of the business objectives of the parties, and to be able to use our understanding of the legal, business and cultural environment in Russia and Germany to support our clients in concluding this deal. Our Firm is on the forefront of cross-border deals, particularly in the new markets, and this is a flagship transaction for us, both in Russia and Germany.”

Ashley Ballard, corporate partner in the Firm’s London office, who worked on the English law aspects of the transaction comments: “We are delighted to have been involved in this very complex and high profile transaction, which was based upon English law, confirming the important role that English law has in cross-border transactions of this nature.”

In addition to Ballard, Hauptmann and Schmitt, the White & Case team included partners James J. Black (U.S. Securities, Corporate/M&A), Josef Grobe Honebrink (Tax), Axel Pajunk (Corporate/M&A) and Andreas Stilcken (Corporate/M&A) in Frankfurt and Irina Dmitrieva (Tax) and Eric Michailov (Corporate/M&A) in Moscow, who were assisted by associates in the Firm’s Moscow, Frankfurt, London and New York offices.

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