Clifford Chance

Clifford Chance advises Volkswagen Group on its technical collaboration and strategic minority investment in XPENG

Leading international law firm Clifford Chance has advised the Volkswagen Group on the international aspects of its entry into a share purchase agreement in respect of a strategic minority investment in XPENG. Hong Kong and New York-listed XPENG is an electric vehicle manufacturer, headquartered in Guangzhou, China. XPENG will issue Class A ordinary shares representing 4.99% of its outstanding share capital to the Volkswagen Group at US$15 per ADS for approximately US$700 million. The closing of the investment is subject to customary closing conditions and obtaining regulatory approvals.

Simultaneously, the Volkswagen Group and XPENG have entered into a framework agreement on strategic technical collaboration to jointly develop two B-class battery electric vehicles (BEV) under the Volkswagen brand for sale in the Chinese market leveraging the strengths of both companies.  The discussion on the strategic technical collaboration is ongoing and is subject to the positive outcome of a project feasibility study.

Partners Kelly Gregory and Virginia Lee co-led a cross-border team comprising lawyers from our M&A, securities, IP and antitrust practices across Clifford Chance's Hong Kong, Shanghai, Beijing, Singapore, New York and Washington D.C. offices. The team included partners Terence Foo, Jean Thio, Ling Ho, Bai Yong and Jonathan Zonis, registered foreign lawyer Eunice Leung, foreign legal counsel Yuling Geng, counsel Zibo Liu, senior associates Peter Zhao and Jeannie Lam and counsel Jacqueline Landells.

Kelly said, "We are excited to bring a high calibre cross-practice team to assist the Volkswagen Group in its technical collaboration and minority investment in XPENG. This milestone transaction will help strengthen the Volkswagen Group's strategic position in China, which is one of the biggest and fastest growing electric vehicle markets globally."

Ling said, "We are proud to have advised on the technology and IP matters relating to the Volkswagen Group's framework agreement on strategic technical collaboration with XPENG on Smart EV technologies."