Baker McKenzie has advised Global New Material International Ltd. ("GNMI") on an agreement with Merck KGaA ("Merck") to acquire its global surface solutions business unit ("Surface Solutions") for 665 million Euro. The transaction is expected to close in the course of 2025, subject to regulatory approvals and the fulfilment of certain customary closing conditions.
GNMI and Surface Solutions are highly complementary in terms of product portfolio, expertise and geographic reach. The planned merger will strengthen the company's position post-merger and enable an even more customer-centric approach to market introduction and further improve product quality.
"Thanks to the expertise in our global team, we were able to support our client in expanding its global footprint and to achieve excellence in the pigment industry through the synergy effects of both companies," commented Christian Atzler, one of the lead partners on this transaction.
Jeff Xu, who co-led the transaction with Christian, added, "This transaction signifies that 'going global' remains a key strategy for many Chinese companies. With our strong capabilities in complex cross-border transactions and our global reach, we look forward to assisting our clients as they expand overseas and explore new growth opportunities."
GNMI has comprehensive experience in research and development, production and sales of synthetic mica, pearlescent materials and new energy materials. With main production capacities in China and Korea, GNMI occupies a leading position in the mid- to high-end market segment and supplies highly-functional materials to multinational customers worldwide in sectors such as automotive, cosmetics, electronics, personal care, plastics, printing, food and pharmaceuticals.
Merck's Surface Solutions division specializes in solutions for coating, cosmetics and industrial applications. Surface Solutions holds a strong position, particularly in the global automotive and cosmetics markets.
Baker McKenzie's Corporate/M&A practice regularly advises on domestic and international transactions. Most recently, Baker McKenzie advised KD Pharma Group on the acquisition of the marine lipids business from dsm-firmenich in exchange for a minority stake in the company; Haier Smart Home, a China headquartered home appliance company, on the acquisition of the commercial refrigeration business of Carrier; Saab on a new investment in Helsing; Trane Technologies on strategic investment in Trailer Dynamics; AURELIUS on the acquisition of Dayco Propulsion Solutions, Knorr-Bremse AG on the sale of a majority stake in Kiepe Electric GmbH; Transcom on its acquisition of timeframe; Sika AG on its acquisition of MBCC Group from Lone Star and sale of MBCC's concrete admixtures business to Cinven.
Legal advisor to GNMI:
Baker McKenzie
Lead:
Corporate/M&A: Christian Atzler (Partner, Frankfurt), Jeff Xu (Partner, Shanghai), Derek Poon (Partner, Hong Kong), Nikolas Lazaridis (Associate, Frankfurt)
IPTech: Patrick Wilkening (Partner, Düsseldorf)
Team:
Corporate/M&A: Brian Wong (Partner, Hong Kong), Guillaume Nataf (Partner, Paris), Sophie Ulrich (Counsel, Düsseldorf), Jessica Buchholz (Associate, Frankfurt), Celina Zaim (Senior Associate, Düsseldorf), Yixin Yang (Associate, Frankfurt), Karyn Gu (Associate, Shanghai)
IPTech: Dr Markus Hecht (Counsel, Frankfurt), Anela Winzig (Associate, Frankfurt), Dr Moritz Sutterer (Associate, Munich)
Real Estate: Dr Daniel Bork (Partner, Düsseldorf), Moritz Jander (Associate, Düsseldorf)
Commercial & Trade: Dr Philipp Schütt (Counsel, Düsseldorf)
Foreign Investment: Anahita Thoms (Partner, Berlin), Rod Hunter (Partner, Washington DC), Dr Alexander Ehrle (Senior Associate, Berlin), Kimberley Fischer (Associate, Berlin), Caroline Walka (Associate, Berlin), Vivian Tsang (Associate, Hong Kong)
Antitrust & Competition: Dr Nicolas Kredel (Partner, Düsseldorf), Laura Liu (Partner, Beijing), Dr Florian Kotman (Senior Associate, Düsseldorf)
Employment: Dr Steffen Scheuer (Partner, Munich), Jeremie Paubel (Partner, Paris)
Banking & Finance: Kenneth Ching (Partner, Hong Kong), Jasmine Cheung (Senior Associate, Hong Kong)