Luther and Fidal advise Chinese automotive supplier ActBlue on the acquisition of a business unit from Continental Group

The transaction included the acquisition of all the shares in Vitesco Technologies Faulquemont S.A.S. and of further assets of the Vitesco Technologies Group. An international team of advisors led by Luther provided ActBlue with comprehensive advice throughout the entire transaction process, from structuring to due diligence and contract negotiations, including with regard to the regulatory requirements in China, France and Germany. In addition to the experts from Luther’s industry group Mobility & Logistics and the Luther China Desk, the French law firm Fidal, with which Luther jointly founded the global organisation unyer, was involved for the due diligence review of the target company and the regulatory specifics of the transaction in France. These particularly included the labour law requirements under French law and how to incorporate them into the contract structure, which is subject to German law.

The transaction further included the acquisition of assets such as production facilities and patents and the conclusion of long-term licence and supply agreements.

Through the acquisition, ActBlue will get direct access to the European and US markets for exhaust after-treatment systems and, at the same time, optimise its own R&D capacities with the aim of accelerating its growth in China following the introduction of the Chinese emission standard CN-VI on 1 July 2021. The former “Continental Powertrain Division” Vitesco Technologies is about to be spun off from Continental and, according to press reports, is to be floated on the stock exchange.

The closing of the transaction is still subject to the approval of the competent authorities in China.

About ActBlue:

ActBlue (Anhui ActBlue Co., Ltd. 8364) was founded in January 2009 by a team of PhD students from North America and specialises in the development and production of exhaust after-treatment systems for diesel, petrol and natural gas engines. ActBlue has been listed on the Shenzhen Stock Exchange since February 2020 and today has a market capitalisation of almost EUR 1 billion. ActBlue is the only listed company in China that specialises in the development and production of exhaust after-treatment systems.

On behalf of ActBlue:

Luther, Corporate/M&A: Thomas Weidlich, LL.M. (Lead Partner and Head of Luther’s China Desk), Philipp Dietz, LL.M. (Partner), Dr Yuan Shen (Senior Associate), Falco Rohrberg, LL.M. (Associate)

Luther, IP: Dr Markus Sengpiel (Managing Partner), Dr Jennifer Velz (Associate)

Luther, Commercial & Distribution Law, Product Liability / Product Compliance: Volker Steimle (Partner), Svenja Trömpert (Associate)

Luther, Shanghai: Philip Lazare, Ni Ningjun (both Partners, Corporate/M&A)

Fidal, Corporate/M&A: Anne Fréchette-Kerbrat (Partner), Christine d'Ovidio (Senior Associate), Berengere Tosani (Associate), Yanis Aldin (Associate)

Fidal, Labor Law and Social Security: Lorraine Raimbert-Nusse (Partner), Anne-Laure Braquehaye (Associate)

Fidal, Competition Law: Alexandre Lacresse (Counsel)