The CSG Group, a leading European defence group headquartered in Prague, has acquired the 57-hectare Gnaschwitz industrial site near Bautzen. The seller of this property was MAXAM Deutschland. The acquisition was handled through its German subsidiary, CSG Energetic Materials Germany GmbH.
An investment of over EUR 100 million is planned for the initial development phase at the Gnaschwitz site. The CSG Group intends to establish production capacities for nitroglycerine and related products there. Simultaneously, the establishment of ammunition and ammunition component manufacturing is projected.
Legal advice to the CSG Group was provided by Luther Rechtsanwaltsgesellschaft mbH. An interdisciplinary team from Luther, led by the Cologne team comprising Dr. Gregor Wecker, Michael Kunkel, and Falco Rohrberg, advised on the transaction. This support included negotiating the purchase agreement, addressing regulatory issues, and real estate law aspects related to the property. Furthermore, foreign trade law issues were handled. Tax advice for the transaction was provided by EY.
Strategic Expansion of the Production Chain
The acquisition of the Gnaschwitz site enables the CSG Group to significantly expand its production chain in Germany. José de Andrés Abad, Legal Director of the CSG Group, noted that the site has over 150 years of production history. This acquisition secures a strategic position for the CSG Group to realise its production plans.
Up to 125 new jobs are expected to be created at the Gnaschwitz industrial site. The parties involved have agreed not to disclose details of the purchase price.
Comprehensive Legal and Tax Advice
- —Legal support for the CSG Group by Luther Rechtsanwaltsgesellschaft mbH.
- —Comprehensive advice on negotiating the purchase agreement and regulatory matters.
- —Specific advice on real estate law and foreign trade law aspects.
- —Tax advice for the transaction by EY.
