Terminations of joint ventures and partnerships should not be surprising, but they often occur earlier than anticipated and can leave partners unprepared.
2022 marked the end of many high-profile joint ventures, including BP, Ford, and Worldwide Wrestling Entertainment shutting down Russian joint ventures or partnerships; Stellantis pulling out of its loss-making Jeep production JV in China; and Pfizer announcing its intent to exit from Haleon, its consumer health venture with GSK, after listing Haleon in London’s biggest IPO in more than a decade. Drafting exit terms in JV agreements can be challenging for counsel as clients and their partners often do not know who will exit and when or how successful the venture will be. Divergent views among partners commonly lead to clashes, particularly when an exiting partner is critical to the JV’s success. Discover the steps legal practitioners can take now to navigate these and other challenges of drafting and negotiating JV exit terms.
Read the full article originally published in Business Law Today.
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