Clifford Chance advises EV maker Leapmotor on equity financing and strategic joint venture with Stellantis N.V.

Global law firm Clifford Chance has advised Chinese EV maker Zhejiang Leapmotor Technology Co., Ltd. on its strategic collaboration with Stellantis N.V. which involves an equity investment by Stellantis into Leapmotor and formation of joint venture to distribute Leapmotor's products to global markets (including the associated IP rights license). Hangzhou-based Leapmotor designs and produces electric vehicles for the mid to high-end market in China.

Stellantis will invest approximately US$1 billion in Leapmotor, representing 17% of Leapmotor's issued share capital. The closing of this transaction is subject to customary closing conditions and obtaining regulatory approvals.

China Co-Managing Partner Tim Wang co-led the deal with partners Yufei Liao advising on M&A matters, Tianning Xiang advising on compliance with listing rules, Tommy Tam advising on Takeovers Code related issues and Yong Bai advising on antitrust aspects, with support from a Greater China team including counsel Janet Fok and Fang Bao, associates Chloe Lau and Ji Zhang.

Tim said, "We are excited to bring our cross-practice team to assist Leapmotor on this landmark transaction with a leading global automotive company like Stellantis. This transaction will help strengthen Leapmotor’s position beyond China, into the growing electric vehicle markets globally. We are honoured to support Leapmotor on yet another milestone, after acting as legal counsel for their IPO last year."

Clifford Chance has advised on several significant deals in the automotive and EV sectors, including Leapmotor’s US$807 million Hong Kong IPO, CALB’s US$1.3 billion Hong Kong IPO and the pioneer GDR listings of three EV battery related companies on the SIX Swiss Exchange.