Clifford Chance has advised Schaeffler AG on the purchase agreement for electric engine manufacturer Compact Dynamics. The supplier for the automotive and industry sectors takes on 51% of the shares in the manufacturer of high performance engines from SEMIKRON International GmbH.

Simultaneously, Schaeffler and SEMIKRON agreed on a cooperation for the development of power electronics systems and the integration of power electronic components. Both, acquiring the majority stake and securing the option for the acquisition of the remainder of the shares in mid-2018 will help Schaeffler reach major competencies in developing and manufacturing its own electric engines for use in the automotive sector. The closing of the transaction is scheduled for the first quarter in 2017; it was agreed to keep any other details confidential.

Compact Dynamics GmbH is based in Starnberg, Germany, and a development specialist in the area of innovative electric power concepts focussing on high performance motors and integrated light weight construction in small series and for motor sport applications. Schaeffler and Compact Dynamics have been working together in a successful partnership for many years, for instance in the context of developing an electric engine for the Audi ABT Schaeffler team who participated in the electric race FIA Formula E.

Schaeffler Group is a leading global integrated automotive and industrial supplier. The company is specialised in precision components and systems in engine, transmission and chassis applications as well as rolling and plain bearing solutions for a large number of industrial applications. The technology company generated sales of approximately EUR 13.2 billion in 2015. With around 85,000 employees worldwide, Schaeffler is one of the world's largest family-owned companies and, with approximately 170 locations in over 50 countries, has a worldwide network of manufacturing locations, research and development facilities and sales companies.

The Clifford Chance team was led by partner Dr. Christof-Ulrich Goldschmidt and included senior associate Dr. Margret Bootz-Hagen, associate Schirin Drewell, senior transaction Lawyer Carina Soesanto (all Frankfurt), associate David Schwenneker (Munich) - all Corporate, partner Marc Besen (Brussels/Düsseldorf), associate Caroline Slusarek (Düsseldorf, both Antitrust), partner Thorsten Sauerhering and senior associate Dr. Dominik Engl (both Tax, Frankfurt), partner Dr. Claudia Milbradt, senior associate Dr. Florian Reiling, associate Nicolas Hohn-Hein (all IP, Düsseldorf), partner Dr. David Elshorst, associate Jörg Reinshagen (both Real Estate, Frankfurt) and associate Dr. Christopher Fischer (Corporate/Employment, Frankfurt).