Blakes also legal counsel this week
Davies assisted in two M&A deals this week, including the $1.2 billion joint venture of Ford and two South Korean industrial firms to build a battery materials plant in Quebec. Also included in this deals roundup is Blakes serving as legal counsel.
Ford, South Korean industrial firms to invest $1.2 billion in Quebec battery materials plant
Global major automaker Ford Motor and two South Korean industrial firms, SK On and EcoPro BM, agreed to invest $1.2 billion in a joint venture to build a cathode manufacturing facility to produce electric vehicle (EV) battery materials in Bécancour, Quebec.
Davies Ward Phillips & Vineberg LLP is serving as legal counsel to EcoPro BM with a team that included Michel Gélinas, Elise Beauregard, Antoine Le Bihan, Shayna Goldman & Andrew Coffey (Corporate), Sabina Han, Michael Kandev & Marie-Emmanuelle Vaillancourt (Tax), Sumeet Dang (IP and Licensing), Joseph Jarjour & Jonathan Godin (Real Estate and Government Incentives), Mark Katz (Competition), Marie-Claude Bellemare (Environment), Agnès Pignoly (Regulatory), Marc-André Boutin & Louis-Martin O'Neill (Contractual Matters).
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EcoPro CAM Canada, which EcoPro BM founded in February, will manufacture cathode active materials under the terms of the agreement. SK On and Ford will become its shareholders once the deal closes.
The federal government of Canada and the provincial government of Quebec both welcomed the investment in the cathode production joint venture and promised $644 million in financial aid.
SK On Chief Commercial Officer Min-suk Sung said, “Through the cathode JV, the three companies can have a stable supply of battery raw materials in North America. We will continue to work with our partners to lead electrification of the global auto market.”
“Ford has been serving customers in Canada for 119 years, longer than any other automaker, and we’re excited to invest in this new facility to create a vertically integrated, closed-loop battery manufacturing supply chain in North America designed to help make electric vehicles more accessible for millions of people over time,” said Ford of Canada president and CEO Bev Goodman. “We’re excited for the opportunity for our first-ever investment in Quebec with a new facility that will help shape the EV ecosystem there.”
“By expanding here in North America, EcoProBM looks forward to globalizing our growth in cathode materials, which has been a unique strength of our company,” said EcoPro BM CEO Jae-hwan Joo. “We also are prepared to contribute to the community in Canada and Québec and contribute to the development of the local economy, including by hiring locally.”
“This investment shows once again that Canada is the green strategic partner of choice for global leaders in the automotive industry,” said The Honourable François-Philippe Champagne, Minister of Innovation, Science and Industry. “Today, we are strengthening Quebec’s key position in the electric vehicle supply chain, while continuing to build Canada’s battery ecosystem. This investment is good for the environment and for the economy, and it will help maintain well-paying jobs for years to come.”
The cathode joint venture will have an annual production capacity of 45,000 metric tons and is expected to be operational in the first half of 2026.
CI Financial to acquire Montreal-based wealth manager Coriel Capital
CI Financial Corp. agreed to acquire Coriel Capital Inc., a Montreal-based wealth management firm that caters to ultra-high-net-worth families.
As of June 30, 2023, Coriel, a firm founded and led by women, manages approximately $1.3 billion in client assets.
Davies Ward Phillips & Vineberg LLP is serving as legal counsel and Blair Franklin Capital Partners Inc. as financial advisor to Coriel.
Davies team consists of Elliot Greenstone, Andrea Dupuis, Vanessa Pendenza, Lara Sioui and Mehlka Mustansir (Corporate/Private M&A); Marie-Emmanuelle Vaillancourt, Olivia Khazam and Xavier Plomtex (Tax); and Hélène Bussières and Mark-Anthony Nakis (Pensions and Employment).
Blake, Cassels & Graydon LLP is serving as legal counsel to CI.
CI CEO Kurt MacAlpine said, “The addition of Coriel expands CI’s presence in the ultra-high-net-worth market, where we are working to build the country’s premier platform to meet this group’s complex requirements. Coriel’s distinct offering is a strong complement to our successful CI Private Wealth and Northwood Family Office businesses.”
Coriel Co-Founder and Partner Gisele Wilson said, “CI understands the needs of ultra-affluent investors and excels at delivering a personalized, boutique experience augmented by the resources of a large company. We expect this relationship to accelerate our growth and enhance our capabilities and the services we offer to our clients.”
The transaction is expected to close in the fourth quarter of 2023.
Canadian Solar to supply largest standalone energy storage project in Arizona
Canadian Solar Inc. announced that e-Storage, part of its majority-owned subsidiary CSI Solar, will supply 1,200 MWh of energy storage solutions to Recurrent Energy’s Papago Storage project in Arizona.
Papago Storage is expected to be the largest standalone energy storage project in Arizona. Once operational, the project is expected to dispatch enough power for approximately 244,000 homes for four hours every day.
Recurrent Energy secured a 20-year tolling agreement with Arizona Public Service (APS) for the energy storage project, under which the utility pays for the right to charge and discharge the battery when it needs to.
The Papago battery energy storage systems (BESS) project will use e-Storage’s SolBank, a containerized, proprietary battery energy storage solution designed and manufactured for utility-scale applications.
Construction is expected to begin in the third quarter of 2024 with planned commercial operation in the second quarter of 2025.