Squire Patton Boggs has advised Croatian Rimac Automobili on its combination with iconic French automotive brand Bugatti Automobiles, a subsidiary of German Volkswagen Group, to create a new automotive and technological powerhouse, Bugatti Rimac LLC.
Uniting Rimac Automobili’s expertise as developer and manufacturer of electric hypercars and provider of full technology solutions with Bugatti’s 110-years heritage of design and engineering powers, represents a fusion of leading automotive minds.
As part of the deal, Rimac Automobili will become a Group and will be split into two separate businesses – the new hypercar business, which will be contributed to the Bugatti Rimac venture, and Rimac Technology. Rimac Group will be the major shareholder in Bugatti Rimac holding a 55% stake, with Porsche keeping its existing 24% shareholding in the Rimac Group and acquiring a 45% stake in the new company.
Bugatti Rimac will be headquartered in Croatia and begin trading as a new combined entity from Q4 2021. Bugatti and Rimac will both continue as separate respective brands, retaining existing production facilities and distribution channels.
The cross-border team advising Rimac Automobili was led by Corporate partners Andrew Glaze (Birmingham) and Jost Arnsperger (Berlin), assisted by associate Shauna Halls (Birmingham), and senior associate Alina Navarro Melendo (Berlin). Also advising were Christian Bleschke (Tax), Diarmuid Ryan and Tatiana Siakka (Competition), Sandra Mueller and Christofer Eggers (IP) and Hagen Reinsberg (Luxembourg law). A substantial team from the Paris office, including Tony Reed, Pauline Pierce, Agata Buczek, Kevin Cosmao, Marion Cavalier and Valerie Ravit assisted by conducting legal due diligence into Bugatti.
The Squire Patton Boggs team worked closely with Rimac’s Croatian counsel Gordon Kunstek of KHS Kunstek, Halle & Simac, Zagreb.
Mr. Glaze commented: “We were delighted to be chosen to represent Rimac on this transformational deal that perfectly combines our client’s expertise in the EV space with the iconic Bugatti brand. The deal played perfectly to our strengths, not least in relation to cross border M&A, but also geographically and in terms of our automotive sector expertise.”
Squire Patton Boggs provides cross-disciplinary legal services to automotive businesses around the world, advising on a variety of matters and transactions. The practice is well known for handling automotive transactions, from multibillion-dollar cross-border M&A deals to joint ventures and expansion, as well as product liability litigation work including representing a number of industry players and globally recognized engagements.