LG advises on global air cargo merger
20 January 2005
Cargolux and SITA create world's only dedicated air cargo IT solutions company
London-based law firm LG has advised new client Cargolux Airlines International S.A. ("Cargolux") in connection with its joint venture with SITA INC to create the world's market leading company in air cargo IT automation.
The merger, between Cargolux's Champ Cargosystems SA and SITA INC subsidiary, SITA Cargo (UK) Ltd., was finalised on 4 January 2005. The new company will be headquartered in Luxembourg; 51% owned by SITA INC and 49% owned by Cargolux.
LG partner Lance Feaver and solicitor Rachel Mills advised Cargolux on all aspects of the acquisition and joint venture arrangements. Lawrence Graham partner Jon Edgell, together with solicitor Sue McLean advised on the IT and support services for the joint venture.
Cargolux instructed LG following Jon Edgell's and Sue McLean's previous work on the outsourcing arrangements between Champ Cargo Systems S.A. and Cargolux which were put in place in anticipation of such a merger.
Lance Feaver said: "We are delighted that Cargolux chose to instruct LG following the arrival of Jon Edgell and his team from Tite & Lewis. This is one of the most significant developments in air cargo IT automation and will bring a faster transition to a new generation of systems, which can deliver the functionality required at a cost the industry can afford.
For us the transaction highlights the additional scope which our new dedicated outsourcing team has brought to the firm and is consistent with our strategy to continue to develop our cross border transactional work."
Michel Schaus, Cargolux's Chief Legal Counsel said: "LG provided a lot of added value to the deal, both through its thorough legal advice and its common-sense attitude and understanding of the relevant business issues."
Luxembourg legal advice was provided to Cargolux by Arendt & Medernach. SITA INC was advised by Fraser McColl of Maxwell Batley in the UK and by Clifford Chance in Luxembourg.
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Lance Feaver
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