Freshfields Bruckhaus Deringer has won the European mandate on the high-profile strategic alliance between automotive giants Chrysler and Fiat.

Freshfields has been instructed as the main European adviser to Chrysler on the deal, which was announced last week (10 June) and saw the Italian car maker take a 20% stake in the new Chrysler entity, which is emerging from its bankruptcy proceedings.

Cologne-based Freshfields corporate partners Ludwig Leyendecker and Kirsten Floss led a large team of associates on the deal, including lawyers in the magic circle firm's London, Barcelona, Brussels, Duesseldorf, Hong Kong, Milan, Moscow, Paris and Tokyo offices. London-based corporate partner Frank Miller also took a role.

As previously reported, US firms Jones Day and Schulte Roth & Zabel have advised Chrysler in the US. Sullivan & Cromwell advised Fiat on the discussions in both the US and Europe, led by Palo Alto-based partner Scott Miller in the US and Frankfurt-based M&A partner Carsten Berrar in Europe.

Under the agreement, the two car makers have created a 'new' Chrysler which is 20%-owned by Fiat. Other stakeholders include the US and Canadian governments, which own 8% and 2% respectively, and have agreed to provide around $8bn (£5bn) in loans to the new company. Under the deal, Chrysler will gain access to Fiat technology as well as its distribution network, while Fiat will not pay anything for its stake.

Jones Day has been the principal adviser on Chrysler's bankruptcy restructuring, led by bankruptcy partner Corrine Ball – with the Cleveland-based firm billing the auto giant more than $18.5m (£11.2m) during the five months leading up to May this year.

Freshfields has been a longstanding European advisor to Chrysler, with previous deals including the purchase of – and subsequent split from – German car maker Daimler.