LG Electronics Inc. (KOSE:A066570) and LG Corp. (KOSE:A003550) agreed to acquire ZKW Holding from Ulrich Mommert and Mommert Immobilien Gmbh for €1.4 billion on April 26, 2018. LG Electronics Inc. (KOSE:A066570) and LG Corp. (KOSE:A003550) agreed to acquire ZKW Holding from Ulrich Mommert and Mommert Immobilien Gmbh for €1.1 billion on August 6, 2018. Under the terms of the transaction, LG Electronics will acquire a 70% stake in ZKW Holding for €1.1 billion with parent company LG Corp. purchasing the remaining 30% for €330 million. As on August 6, 2018, LG Electronics revised the consideration for its 70% stake to KRW 984 billion (€748.2 million). ZKW Holding reported revenues of €1.26 billion in 2017. ZKW Holding will continue to be managed by the current team led by Chief Executive Officer Oliver Schubert, who will be responsible for all operations around the world. The corporate headquarters of the ZKW Group will remain in Austria. ZKW Group will remain self-sufficient in its decisions and actions within the LG Group. Production in Austria will remain unchanged for at least five years. The ZKW brand is to be retained as well as the two domestic locations in Wieselburg and Wiener Neustadt, in which 3,500 employees are employed.

The transaction is subject to clearance by the respective cartel authorities. The Board of Directors of LG Electronics and the supervisory board of ZKW Holding GmbH approved the acquisition. The European Commission approved the acquisition on July 18, 2018. The transaction is expected to close August 3, 2018. Jochen Tyrolt, Christian Cascante, Johannes Schrägle, Maike Sauter, Markus Martin, Jan Stenger, Sava Kasaliyski, Michael Ilter, Stephan Dangelmayer, Olaf Hohlefelder, Christian Arnold, Thomas Winzer, Tobias Abend, Achim Dannecker, Michael Rudolf, Hanna Datzer, Konrad Grünwald, Moritz Holm-Hadulla, Dominik Braun, Andreas Schüssel, Vanessa Gehle, Herwig Lux, Christopher Noll, Helge Kortz, Andrea Leufgen, Florian Wagner and Christiane Freytag of Gleiss Lutz and Andreas Mayr, Christoph Brogyányi, Florian Nikolai, Clemens Burian and Julia Haunold of Dorda Brugger acted as legal advisors to Ulrich Mommert. Günther Stenico, Gottfried Sulz and Christian Oberkleiner of TPA Steuerberatung GmbH acted as accountants to ZKW.

Benedict Sprinzl, Lukas Allram, Ayk Tobias Meretzki, Quan Zhou, Heiner Braun, Konrad Gröller, Konstantin von Richthofen, Lars Meyer, Tatjana Krutzler, Eva-Maria Hoyler, Sandra Gutmann, Maria Tumpel, Martin Schiessl, Andre Happel, Leonard Kirscht, Claus Staringer, Lukas Mechtler, Katrin Gassner, Katharina Gebauer, Aaron Green und Donghao Cui, Ninette Dodoo, Karin Buzanich-Sommeregger, Leonhard Prasser, Felix Neuwirther, Johannes Samaan, Thomas Deutinger, Filip Peric, Lukas Bauer, Andreas Huber, Christof Pöchhacker, Matthias Hofer, Wolrad Prinz zu Waldeck und Pyrmont, Stephan Dorn, Mathias Lehner, Michael Isak, Georg Lübbehüsen, Gernot Fritz, Lukas Treichl, Daniel Lungenschmid, Stephan Rödler, Anahit Gasparyan, Eileen Siemer, Lee & Ko and Jang Hyuk Yeo of Freshfields Bruckhaus Deringer LLP and Jang Hyuk Yeo of Lee & Ko acted as legal advisors and JP Morgan acted as financial advisor to LG Electronics Inc and LG Corp. Marc Kutschera, Kai Tschoeke and Vikas Sehgal of Rothschild & Co SCA (ENXTPA:ROTH) acted as financial advisor to Mommert Immobilien Gmbh.

LG Electronics Inc. (KOSE:A066570) and LG Corp. (KOSE:A003550) completed the acquisition of ZKW Holding from Ulrich Mommert and Mommert Immobilien Gmbh in August 2018.