Freshfields Bruckhaus Deringer (‘Freshfields’) has advised Toray Industries, Inc. (‘Toray’) on entering into a joint venture with LG Chem Ltd. (‘LG Chem’). Under the terms of the agreement, LG Chem will invest US$375m (around ¥43bn) in Toray Industries Hungary Kft. (‘THU’), a wholly-owned subsidiary of Toray engaged in the manufacture and sales of battery separator film in Hungary. Toray and LG Chem will each initially hold a 50 per cent shareholding in the joint venture, which is expected to begin operations in the first half of 2022, subject to regulatory approvals.

The new joint venture will use THU’s existing facilities to manufacture battery separator film for automotive lithium-ion batteries, which will be sold to LG Group in Europe and the United States.

LG Chem’s robust position in coating technology and Toray’s solid film substrate manufacturing technologies position both companies well in battery separator films for automotive lithium-ion batteries, and both have been supplying the global market.

The Freshfields team advising on the transaction was led by Head of Japan M&A Tomoko Nakajima and partners Jochen Ellrott and Takeshi Nakao, supported by associate Hugh Goodwin, senior associate Marcus Wolter, and counsel Eric Johnson. Antitrust advice was provided by partner Kaori Yamada and associate Pauline Fliche. IP advice was provided by Richard Bird. Hungarian law advice was provided by Hungarian firm Oppenheim.

ENDS