Shearman & Sterling advised Eurex Zürich AG (Eurex) on the increase of its stake in Leipzig-based European Energy Exchange AG (EEX).

At the end of December 2010 Eurex entered into an agreement with Landesbank Baden-Württemberg (LBBW) whereby Eurex acquired LBBW’s stake in EEX of up to 22.96 percent. After the Supervisory Board of EEX approved on March 31, 2011 the transfer of all shares in EEX that were previously held by LBBW, all terms set out by the agreement between Eurex and LBBW were fulfilled, enabling Eurex to acquire the majority of LBBW’s shares.

In accordance with the consortium agreement and the contractually agreed rights of tender contained therein, LBBW was obligated to offer its shares on a pro rata basis to other EEX shareholders. After completion of the tender process, it is clear that Eurex’s current shareholding of 35.23 percent in EEX will rise to 56.14 percent (an increase of 20.91 percentage points). Eurex will pay approximately EUR 65 million to LBBW for the shares acquired.The transaction has been approved by the relevant supervisory bodies, including the Exchange Supervisory Authority in Saxony, the Federal Financial Supervisory Authority (BaFin) and the German Federal Cartel Office.

EEX is the leading energy exchange in continental Europe. EEX holds 50 percent of the shares in EPEX Spot SE, which operates the Power Spot Market for Germany, France, Austria and Switzerland. German and French power derivatives trading is concentrated within EEX Power Derivatives GmbH, a majority-owned EEX subsidiary based in Leipzig. Furthermore, EEX offers spot and derivatives trading in natural gas and CO2 emission rights as well as trading in financial coal futures. EEX Group also includes European Commodity Clearing AG (ECC), the central clearing house for energy and related products in Europe.

Eurex was advised by Shearman & Sterling partner Dr. Roger Kiem (Frankfurt-Mergers & Acquisitions) and associates Andreas Wieland (Frankfurt-Mergers & Acquisitions/Financial Regulatory) and Wichard Graf von Hardenberg (Frankfurt-Mergers & Acquisitions).