LAWFUEL – Law Firm Newswire – Akin Gump Strauss Hauer & Feld LLP in Moscow and London (‘Akin Gump’) has advised OAO LUKOIL (‘LUKOIL’) on its acquisition of a €1.347 billion stake in a joint venture with ERG S.p.A. (‘ERG’), signed on 24th June 2008.
The joint venture will operate the ISAB refinery complex in Priolo, Sicily, one of the largest refineries in the region with total annual refining capacity of 16 million tons.
LUKOIL will acquire a 49% stake in the joint venture with ERG retaining 51%. The transaction structure provides LUKOIL with a possibility to increase its stake in future. Each partner will be responsible for procuring its share of crude oil and marketing its share of products in accordance with its equity stake in the joint venture.
“This a transformational deal for LUKOIL. We are extremely pleased to help this well-established client on another significant transaction, which helps to highlight Akin Gump’s strengths in cross-border M&A and in energy sector transactions,” commented Richard Wilkie, one of the lead partners on this transaction and Partner-in-Charge of the Moscow office of Akin Gump.
The transaction will depend on necessary antitrust approvals and other conditions, including an approval by the European Commission for Competition. It is expected to be closed in the fourth quarter of 2008.
The team from Akin Gump advising LUKOIL included Partners Natalia Baratiants and Richard Wilkie, Counsel Alexander Trukhtanov and Jonathan Socolow, and Associate Alla Stewart in Moscow, and Partners Fred Heller and Sebastian Rice in London.
Akin Gump worked with Italian counsel Eugenio Grippo and Alessandro Giuliani, and senior associate, Magda Serriello, from Gianni Origoni Grippo & Partners.
ERG were advised by Grimaldi & Associates. Shearman & Sterling served as English law counsel.