McDermott Advises Volkswagen Financial Services AG on Strategic Joint Venture with J.P. Morgan
Frankfurt, September 14, 2021 – McDermott Will & Emery has advised Volkswagen Financial Services AG (« VWFS ») on its joint venture with J.P. Morgan International Finance Limited (« JPM ») in Volkswagen Payments S.A.. Volkswagen Payments S.A. is an e-money institution that concentrates payment solutions for the brands of the Volkswagen Group and offers e-wallet accounts and payment processing for customers of Volkswagen AG.
Through the acquisition of a 74.9 percent stake in Volkswagen’s payments business, JPM will acquire a majority voting interest in Volkswagen Payments S.A. with the goal of strategically opening the company to the broader automotive industry, expanding Volkswagen Payments S.A.’s digital payments capabilities and further developing the platform for new markets and industries outside of the automotive sector. VWFS will remain a shareholder in the partnership and will help shape the joint venture accordingly. The platform will continue to enable payments across the Volkswagen network for all Group brands worldwide.
The transaction is expected to close in the first half of 2022 and is subject to approvals by merger control authorities, confirmation by the Luxembourg regulator and the U.S. Board of Governors of the Federal Reserve System, and approval by the German Federal Ministry of Economics and Technology.
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