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Weil Advises Lone Star on Sale of Corealcredit Bank to Aareal Bank

The Frankfurt office of the international law firm Weil, Gotshal & Manges LLP is advising US financial investor Lone Star on the sale of Germany’s Corealcredit Bank AG (CCB) to MDAX listed Aareal Bank AG. CCB specializes in commercial property financing in Germany. The transaction is subject to clearance by the relevant regulatory authorities and is expected to close within the first six months of 2014.

Lone Star acquired the bank, named Allgemeine Hypothekenbank Rheinboden AG at the time, at the end of 2005, subsequently recapitalizing and repositioning it. This was the first time that a German bank struggling with financial difficulties was not rescued by the mechanisms provided by the banking sector itself for such cases, but rather was realigned by a financial investor with the requisite restructuring experience. Lone Star subsequently acquired two further German banks, IKB AG and Düsseldorfer Hypothekenbank AG. The shareholding in CCB now is the first among these investments in Germany from which Lone Star, following the successful realignment, is exiting by way of a sale to a strategic industry buyer.

This transaction impressively underlines the premier market position held by Weil on the German market in advising in the PE/M&A segment "financial institutions and financial services." In the past, Weil, in addition to acting for Lone Star on the takeovers of Allgemeine Hypothekenbank Rheinboden and Düsseldorfer Hypothekenbank, also advised, among others, General Motors on the acquisition of the automotive financing operations in Latin America, Europe and China from Ally Financial Inc., as well a financial investor on the acquisition of a majority stake in 360 Treasury Systems AG.

The Weil team advising Lone Star included partners Uwe Hartmann (Corporate, Frankfurt (lead)), Jürgen Börst (Tax, Frankfurt) and Britta Grauke (Dispute Resolution, Frankfurt) and the associates Jan Harmjanz, Christian Grahlmann, Christopher Peinemann (all Corporate, Frankfurt), as well as Annette Urbach (Tax, Frankfurt).