OVERVIEW OF THE MARKET OF BRAND-RELATED JOINT VENTURE IN EUROPE
Joint ventures have become a pivotal strategy for European companies aiming to enhance brand value, access new markets, and drive innovation.
MARKET VOLUME OF BRAND-RELATED JOINT VENTURE IN EUROPE
The European market has witnessed a substantial increase in joint venture activities, particularly in sectors such as automotive, technology, and consumer goods. According to the London Stock Exchange Group, there have been over 78,000 formal joint ventures and 223,000 strategic alliances globally since 1985, encompassing various agreements like licensing, manufacturing, and research and development.
In the automotive industry, joint ventures have surged, with a 198% increase in deal volumes from January 2021 to June 2022 compared to previous years.
FINANCIAL IMPACT OF BRAND-RELATED JOINT VENTURE IN EUROPE
Joint ventures have significantly contributed to the financial performance of European companies by enabling them to share risks, reduce costs, and accelerate market entry.
For instance, in the automotive industry, the partnership between Stellantis and Leapmotor involves Stellantis acquiring a 20% stake in Leapmotor for €1.5 billion, facilitating the introduction of Leapmotor’s electric vehicles into the European market.