Environmental Due Diligence Assessment
Supporting Investment in UK Technology Development Firm
Travers Smith, a leading full-service UK law firm, commissioned TRC (on behalf of a confidential Fortune 500 technology client) to undertake environmental due diligence of a semiconductor manufacturing business in the United Kingdom. The main production activity undertaken by the business is the fabrication of micro LEDs on silicon wafers.
Due diligence was required to support the client’s proposed long-term, exclusive development and manufacturing agreement with the business. The assessment was intended to identify potential contaminated land risks associated with the business and to evaluate its compliance with environmental regulations to identify any environmental issues presenting a risk of materially interrupting ongoing business operations, negatively impacting the client’s investment.
TRC Due Diligence Advice
The assessment comprised a Phase I Environmental Site Assessment (ESA) and limited environmental compliance review (LCR). TRC visited the manufacturing site and held in-depth discussions with key site personnel concerning the activities and operational history of the site and the business as a whole.
A key focus of the assessment was to understand how the business managed the wide variety of materials – some extremely hazardous – which are integral to the manufacture of micro LEDs, including how they are stored, handled and used, what wastes are generated and how these are stored and disposed of. A review of database and regulatory information supported the site visit and discussions.
TRC was uniquely well-positioned to provide this due diligence advice due to our:
- Experience working with clients in the technology and semi-conductors’ sectors.
- Expertise in providing environmental liability advice to US corporate clients and their legal teams on international transactions. TRC’s deal professionals and subject matter experts provided context on applicable UK and European regulations, their application in practice to this business and comparison with equivalent US regulations.
- Collaborative approach to due diligence, working closely with Travers Smith’s environmental lawyers, to understand the issues significant to the client, to communicate them effectively and to provide options to manage/minimise material risks.
TRC’s report was delivered on schedule and the client signed the development and manufacturing agreement in March 2020.
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