Bringing true mettle to complex multijurisdictional deals

Eversheds Sutherland has advised Sims Metal Management Limited (Sims) on the agreed €83.5m sale of its European compliance scheme orientated recycling operations to German-based TSR Recycling, a subsidiary of REMONDIS Group.

Sims is one of the world’s largest metal and electronics recyclers with over 250 facilities, including joint venture operations, in 18 countries.

The operations that have been sold are located in Germany, Austria, the Netherlands, Belgium and Sweden. The deal, which is subject to competition approval by the European Commission, includes the sale of Sims’ waste electrical and electronic equipment (WEEE) treatment facilities in Sweden, Norway, Belgium and the Netherlands.

The sale does not include Sims’ global e-recycling IT asset disposal business.

The multijurisdictional Eversheds Sutherland team was led by corporate Partner James Trevis with Principal Associate Anthony Cross (corporate, Germany) and Senior Associate Thomas Plant (corporate, UK).

The wider team included Partners Peter Harper (competition, UK), Simon Weppner (tax, Germany), David Beswick (employment, UK), Jane Southworth (EHS, UK) and Tom van Wijngaarden (corporate, Netherlands), Consultant Stephen Rose (competition, UK), Principal Associates Evy Verhaeghe (corporate, Belgium), Claire Morgan (competition, UK), Anique Bitterlich and Marieke Koster (both employment, Netherlands), Senior Associates Christian Lindner (corporate, Germany), Michael Hardiman (employment, UK), Lukas Ploesch (corporate, Austria) and Laetitia Goor (real estate, Netherlands) and Associates Jake Perryman (corporate, UK), Rachael Tattersall (EHS, UK) and Dane Stattin (corporate, Sweden).

James Trevis commented: “This was a complex, multijurisdictional deal where strong collaboration and careful project management was absolutely key. We have a long standing 20 year relationship with Sims and we’re delighted to have been able to assist on what is a notable transaction for them. We look forward to continuing to support Sims in the future.”

Josef Malik, Director of Business and Legal Affairs at Sims Metal Management Limited, commented: “This was a strategically important deal for our company and we are pleased with this outcome. The Eversheds Sutherland team was excellent, combining a comprehensive understanding of our business with first class legal advice, commercial nous and innovative solutions to ensure the very best result.”

AVELLUM advises on large infrastructure financing deal

AVELLUM acted as the Ukrainian legal counsel to the European Bank for Reconstruction and Development (“EBRD”) in connection with a senior secured loan of up to EUR2.6 million to Negabarit-Service LLC (“Company”), a Ukrainian leader in the oversized and complex auto cargo transportations.

The loan will help financing the Company’s investment programme for the acquisition of up to 42 trucks equipped with advanced GPS systems and 18 trailers. Industrial customers across Ukraine and the EU will have access to a wider range of oversized cargo transport services following the transaction.

The new trucks will decrease the Company’s operating costs by at least 30% due to a reduction in fuel consumption and maintenance expenditure. The new vehicles will be compliant with EURO-6 or higher emissions standards, which will help decreasing nitrogen oxide (NOx) emissions by 80% and carbon oxide (CO) by 22%.

The EBRD is the largest international investor in Ukraine, which has provided almost EUR13.1 billion to fund approximately 418 projects since 1993.

The AVELLUM team was led by senior partner Glib Bondar with support from counsel Maria Tsabal and associates Oleksandra Kupriichuk and Anna Kalabska.

If you would like to get more information, please visit https://avellum.com/en

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Mid-stream mergers and acquisitions for Q3 of 2018

A combined value of US$91.9 billion in mergers and acquisitions (M&A) was announced in Q3 of 2018. This was an increase of 21% from the US$75.9 billion in M&A deals announced in the previous quarter. The number of M&A deals decreased by 20% from 102 in 2Q18 to 82 in Q3 of 2018, according to GlobalData, a leading data and analytics company.

The company’s latest report: ‘Quarterly Midstream Capital Raising Review – Q3 2018’ states that, of the total M&A deals, 58 deals, with a combined value of US$83.6 billion, were domestic acquisitions and the remaining 24, with a combined value of US$8.2 billion, were cross-border transactions. A quarter-on-quarter comparison shows a 12% decrease in cross-border transaction values in 3Q18, compared to US$9.3 billion in 2Q18. However, domestic transaction values increased by 26% in 3Q18 compared to US$66.5 billion in 2Q18.

Energy Transfer Equity’s (ETE) agreement to acquire the remaining stake in Energy Transfer Partners (ETP) for a purchase consideration of approximately US$60.4 billion was the top deal registered in 3Q18. Another landmark deal that was recorded in 3Q18 was Enbridge’s agreement to acquire all of the outstanding public Class A common units of Enbridge Energy Partners, all of the public outstanding shares of Enbridge Energy Management, and all of the issued and outstanding shares of Enbridge Income Fund Holdings, for a purchase consideration of US$7.1 billion.

Americas remained the frontrunner for M&A registering 33 deals, with a total value of US$82.1 billion in 3Q18. Cross-border activity in the region decreased from 9 in 2Q18 to 6 in 3Q18, while domestic acquisitions decreased by 43% from 47 deals in 2Q18 to 27 in 3Q18.

Europe, Middle East, and Africa accounted for 37% share in 3Q18, comprising 31 acquisitions, of which 10 were cross-border and the remaining 21 were domestic acquisitions. The Asia-Pacific region accounted for 20 global deals, or 24% in 3Q18, of which 10 were cross-border acquisitions and the remaining 10 were domestic acquisitions.

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Australia’s Mineral Resources to sell 49% stake in lithium project

Mining services provider Mineral Resources Ltd (MIN.AX) on Tuesday said it was looking to sell a minority stake in its Wodgina Lithium mine in the west of Australia.

The Australian company said in a statement that it was seeking partners to take up to 49 percent of the project in the Pilbara region, after receiving a number of unsolicited approaches from parties interested in a stake or in offtake agreements.

Riding a wave of demand for the mineral used in electric vehicle batteries, the firm already has a joint venture with China’s largest lithium producer, Jiangxi Ganfeng Lithium, to develop its Mount Marion lithium project in the same state.

“This minority sales process is in line with (our) strategy of investing in early-stage projects, adding significant value and then seeking equity partners to share in the value,” Managing Director Chris Ellison said in the statement.

The Wodgina project produced about 1.16 million wet tonnes of lithium direct shipping ore (DSO) in the quarter that ended in March, accounting for a large portion of the company’s overall production.

“(Mineral Resources) will only introduce project partners if acceptable terms can be secured. (The company) has the capability to finance and implement its downstream processing strategy at Wodgina on its own,” Ellison added.

The stake sale comes amid burgeoning sector consolidation, with Australian lithium miner Galaxy Resources (GXY.AX) assessing options for its stake in a large lithium deposit in Argentina.

Mineral Resources said lithium processors, battery manufacturers, international trading companies and automakers had approached it over Wodgina.

“Min Res are used to putting together a joint venture on a project,” said Canaccord Genuity analyst Larry Hill, adding that contenders would be companies that could process the mineral into a battery-ready form.

Mineral Resources may also consider selling its offtake from the project to partners as part of the transaction. Appetite for Australian hard rock deposits is increasing as manufacturers look to secure high-purity supply.

Wodgina is among the world’s biggest hard rock deposits and is also located close to Port Hedland, a large bulk commodities port.

Investment bank Macquarie Capital (Australia) and Australian law firm Gilbert and Tobin have been appointed to assist with the sale. Mineral Resources said it was planning to announce a buyer in the second half of the year.

Shares in the firm were up about 0.6 percent, compared to a 0.5-percent rise in the broader market.