SullCrom, Schulte in driving seat on Chrysler Fiat JV

Schulte Roth & Zabel and Sullivan & Cromwell have snared lead roles on the joint venture between Chrysler and Fiat.

Schulte Roth & Zabel and Sullivan & Cromwell have snared lead roles on a major joint venture between US car manufacturer Chrysler and Italian rival Fiat.

Palo Alto-based Sullivan & Cromwell partner Scott Miller led a team advising Fiat. Chrysler is being advised by Schulte Roth & Zabel partners Richard Presutti, Robert Kiesel and Alan Waldenberg.

The non-cash deal provides Chrysler with access to Fiat’s technology facilities as well as financial assistance for Chrysler factories. Fiat will own a 35 per cent stake in Chrysler with an option to buy a majority stake in the company at a later date.

Miller said: “The most challenging aspect of the deal is yet to come. Moving from a non-binding term sheet to completing the transaction in line with the timetable for funding will be a challenge for the team.”

Miller added that the firm will mobilise a team of approximately 10 lawyers to advise on the deal. He said Sullivan & Cromwell will also work closely with Fiat’s in-house legal and business teams.

Fiat has been a Sullivan & Cromwell client for four years. Miller advised the car manufacturer on the termination of its industrial alliance with General Motors in 2006.

Schulte Roth declined to comment.

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