이 기사는 2021년 08월 13일 07시57분 thebell에 표출된 기사입니다

Hanwha Solutions’ 727 million euro ($853 million) takeover of renewable energy developer RES France faces a hurdle of getting consent of the French company’s works council.

The South Korean company on Monday agreed to acquire 100% of the French business of UK-based RES Group.

The two parties signed an exclusivity and put option agreement prior to entering into a stock purchase agreement. Under French law, a consultation process with the company’s works council should precede an acquisition agreement.

If consent of RES France’s works council is obtained, the seller will exercise the put option, which will prompt Hanwha Solutions to fulfill its obligation to sign a definitive acquisition agreement and make the payment to close the transaction.

One of the most notable acquisitions of French companies by South Korean companies in recent years is Naver’s 2017 takeover of Xerox Research Center Europe (XRCE).

The deal was also subject to a consultation process of the works council of XRCE. Although Naver was not well known in Europe compared to competing suitors, the internet giant succeeded in getting the works council’s consent as a result of efforts led by the company’s founder Lee Hae-jin and Song Chang-hyeon, then Naver’s chief technology officer and currently the chief executive officer of autonomous driving startup 42dot.

Fleur Pellerin, the founder of Korelya Capital and a former French digital and culture minister, also reportedly helped Naver with this process. In 2016, Naver invested in a fund launched by Korelya Capital.

Hanwha Solutions said it expects the deal to close on October 20 but added that the timeline is subject to change based on the progress of the works council consultation. Bae, Kim & Lee LLC is serving as legal adviser to Hanwha Solutions.

The deal is the largest ever takeover by Hanwha Solutions, which was formed in 2020 after a merger of Hanwha Group’s three affiliates – Hanwha Chemical, Hanwha Q Cells and Hanwha Advanced Materials. The company is led by Kim Dong-kwan, the eldest son of the conglomerate’s chairman Kim Seung-youn. (Reporting by Gyoung-tae Kim)