ProMach is a leading international platform in the field of packaging and processing technologies.

DFT is an established provider of innovative solutions in the field of sterilization, pasteurization and other thermal processes for the food and beverage industry. With the acquisition of DFT, ProMach is continuing its growth strategy in Europe.

The international cooperation within the ADVANT alliance played a central role in this transaction: our Italian alliance partner ADVANT Nctm has been advising ProMach in Italy for many years.

ADVANT Beiten entered into the mandate in close coordination with the US law firm Thompson Hine, which regularly advises ProMach on legal matters in the United States.

Advisors to ProMach:
ADVANT Beiten: Prof Dr Hans-Josef Vogel (Dusseldorf), Roy Naor (Frankfurt, both Corporate/M&A, lead partners), Dr Andreas Imping, Anna Kubitz (both Labour Law), Mathias Zimmer-Goertz, Christian Döpke (both IP/IT), Sarah Peters, Simon Litterst (both Corporate/M&A, all Dusseldorf), Christopher Harten (Dispute Resolution, Hamburg), Marcus Mische, Markus Linnartz (both Tax), Thomas Herten (Real Estate, all Dusseldorf), Katrin Lüdtke (Public Sector, Munich).

Public Relations
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

In addition, six colleagues were elected Local Partners and nine colleagues were elected Salary Partners. The newly elected partners are from all six German offices of the law firm, working in seven different areas of competence.

Dr Florian Weichselgärtner handles a large number of liability cases every year, both in the area of manager liability and the liability of lawyers, tax advisors, insolvency administrators, corporate and restructuring advisors and auditors. His area of activity further comprises advice to companies on the processing of liability cases and compliance violations. The interdisciplinary advisory service of ADVANT Beiten enables Dr Florian Weichselgärtner to comprehensively handle the often complex liability cases across all legal areas (tax law, criminal law, labour law, capital market law, insolvency law, etc.). Due to his many years of advisory practice, he has proven experience both in conducting and defending actions for damages as well as in out-of-court dispute resolution.

These are our new Local Partners in alphabetical order:

• Sascha Opheys (Public Sector, Dusseldorf)
• Max Stanko (Public Sector, Berlin)
• Dr Philipp Sahm (Corporate/M&A, Frankfurt)
• Haide Spanier (Banking, Finance & Restructuring, Frankfurt)
• Mark Thönißen (Corporate/M&A, Frankfurt)
• Dr Mark Zimmer (Labour Law, Munich)

Our newly elected Salary Partners are listed in alphabetical order:

• Regina Dietel (Labour Law, Munich)
• Gamze Dogan (Tax Law, Dusseldorf)
• Verena Nader (Real Estate, Munich)
• Dr Christian Osbahr (Corporate/M&A, Freiburg)
• Robert Schmid (Corporate/M&A, Berlin)
• Simon Schuler (Corporate/M&A, Freiburg)
• Etienne Sprösser (Corporate/M&A, Freiburg)
• Maximilian Steffen (Tax Law, Hamburg)
• Ulrike Stöhr (Tax Law, Munich)

"The appointment of our new partners shows how closely we work together across offices and between our practice groups - supported by diverse industry expertise," explains Dr Guido Krüger, Managing Partner of ADVANT Beiten, adding: "The fact that we have had successful elections at all three seniority levels underlines the continuous development of outstanding talent in our firm. Accompanying our colleagues on their path to partnership is one of our central tasks."

ADVANT Beiten also continues to follow its strategy of targeted growth by lateral hires in selected areas. The following Local and Salary Partners reinforced the firm last year:

• Tanja Ehls (SP, Public Sector, Frankfurt)
• Julian Gruß (SP, Real Estate, Dusseldorf)
• Peter Meisenbacher (SP, Public Sector, Freiburg)
• Ansgar Messow (LP, Real Estate, Dusseldorf)
• Johannes Voß-Lünemann (SP, Public Sector, Berlin)

PR
Frauke Reuther
Manager Communication
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

CATT operates its first plant outside China in Arnstadt, Thuringia. With 1,700 employees, the plant is the largest foreign subsidiary of the battery manufacturer. Existing customers in Germany include companies such as BMW and Mercedes-Benz. In addition to the site in Germany, the expansion plans focus in particular on the sites in Hungary and Spain.

CATL has made a profit of approx. 4.6 billion dollars with the stock exchange listing in Hong Kong. The final price per share was set at 263 Hong Kong dollars, this corresponds to the maximum offer price. The scope of CATL's transaction could increase to 5.3 billion dollars, if a so-called greenshoe option results in the sale of a further 17.7 million shares. The fresh capital will be used in particular to finance CATL's further expansion into Europe. 

CATL Advisor - as a German Legal Counsel:

ADVANT Beiten: Dr Dirk Tuttlies (in charge; Capital Market Law), Dr Christian von Wistinghausen (in charge; Due Diligence), Tassilo Klesen, Danah El-Ismail, Simone Schmatz, Christian Burmeister, Lelu Li, Damien Heinrich, Robert Schmid (all Corporate/M&A), Katrin Lüdtke, Korbinian Goll (Public Law).

Public Relations

Frauke Reuther
Communications Manager
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Despite this, hydrogen remains a key technology in the eyes of the new coalition government. With the special infrastructure fund^[2] on the one hand and the prospect of an expanded framework for state aid on the other, there is indeed new impetus that gives hope.

Reason enough to take a look at the political agenda and the corresponding levers in the regulatory framework. 

What does the coalition agreement say?

The future of the hydrogen economy is negotiated centrally in the coalition agreement in no less than twenty lines (p. 34), which are a tough sell:

Pragmatism instead of dogmatism

The development of the hydrogen economy should be faster and more flexible. In addition, "all colours" of hydrogen are to be used - in other words, a technology-neutral approach is to be pursued. The previous focus on green hydrogen in particular will thus be abandoned. Moreover, the focus of the future certification system (probably for both green and low-carbon hydrogen) is on making it unbureaucratic.

Broad infrastructure expansion

With additional routes and taking into account hydrogen storage facilities, the hydrogen core network is to be supplemented by a distribution network infrastructure to ensure a connection to the industrial centres in the south and east. In addition, European and German harbours are to be integrated into and connected to the necessary infrastructure for the import of hydrogen.

Stabilise funding instruments

National and European funding programmes are still needed to develop infrastructures and domestic production capacities. The coalition agreement explicitly mentions H2Global, IPCEI projects and specific programmes for SMEs.

Further ideas for additional incentives for the demand for hydrogen can already be found on p. 6 of the coalition agreement. There, climate-neutral lead markets are outlined via the quota regime (e.g. for green steel) or levers under public procurement law.

What does the European Clean Industrial Deal make possible?

If the Commission has its way, Germany (and the other Member States) will in future have an extended framework under state aid law for the promotion of investments in hydrogen ramp-up.

The draft Clean Industrial Deal^[3] presented by the Commission in February also explicitly provides for a new aid framework (Clean Industrial State Aid Framework - CISAF^[4]). This is intended to complement the existing guidelines for state aid for environmental, climate protection and energy. As the name already suggests, the focus is on industrial policy requirements. In addition, the present draft explicitly recognises the challenge of the cumulation of different state aid vehicles and attempts to resolve this.

In addition, further impetus for the hydrogen industry is expected from Brussels. For instance, the delegated act on low-carbon hydrogen is to be adopted in 2025 to create clarity for investors. This will be accompanied by a study to assess the effectiveness of the current regulatory framework and to identify potential obstacles to the expansion of renewable hydrogen.

In the second quarter of 2025, a hydrogen mechanism is to be introduced via the European Hydrogen Bank (EHB) which will bring together buyers and suppliers and provide financing and risk mitigation instruments. A third bidding round of the EHB with a budget of up to EUR 1 billion is planned for the third quarter of 2025.

Seize opportunities - minimise risks

With the change of government acting as a catalyst, the legal framework for the hydrogen economy, including the funding landscape, is likely to change again over the next few months.

In addition to new funding vehicles, however, adjustments to existing privileges cannot be ruled out.

For instance, in its recently published discussion paper on the further development of the general grid fee system, the Federal Network Agency casts doubt on the appropriateness of the existing 20-year grid fee privilege for electrolysers.^[5]

Hence, flexible regulations are needed in the contractual design of projects that safeguard economic interests even against the backdrop of a constantly changing legal situation. 

In addition, funding law challenges must be overcome when cumulating privileges. This is because national regulations can also fall under cumulation bans beyond the subsidies approved under state aid law, e.g. as part of the IPCEI waves or the EHB tender processes. Finally, there is also a risk of reclaims if funding recipients violate public procurement law requirements when using the funding. In procurement processes, the framework set by the respective funding provider and the applicable public procurement law should therefore be observed without exception to avoid unpleasant surprises - e.g. in the context of a later audit of the utilisation of funds.

Conclusion

With the special infrastructure fund on the one hand and the short-term expansion of state aid instruments on the other, the chances of a successful market ramp-up in Germany are better than they have been for a long time.

In addition, Katherina Reiche is a proven expert at the head of the BMWE who credibly stands in favour of consolidating the legal framework. The speed at which the requirements for new projects and those already being realised are likely to remain high.

Authors: Sebastian Berg and Max Stanko

Experts involved: Julian Gruß and Johannes Voß-Lünemann

^[1] Cf. BDEW, Strombezugskriterien Delegierter Rechtsakt für RFNBO-konformen Wasserstoff, with clear criticism of the current design of the additionality and temporal correlation criteria, available at: Strombezugskriterien Delegierter Rechtsakt für RFNBO-konformen Wasserstoff | BDEW

^[2]In this respect, the DVGW is calling for a further 50 billion from the special infrastructure fund to finally boost the market ramp-up, DVGW e.V.: 2025-04-23 - Sondervermoegen.

^[3]See also: EU-Kommission stellt den Action Plan for Affordable Energy als Teil des Clean Industrial Deals vor | ADVANT Beiten

^[4] See draft version under 45b532ce-53fb-4907-975c-79edaa31a166_en.

^[5] BNetzA, Bundesnetzagentur - Presse - Bundesnetzagentur veröffentlicht Diskussionspapier zur Bildung der Stromnetzentgelte.

With its SolarMe electricity brand, Solarimo offers tenant electricity solutions for the housing industry. With this transaction, 300 photovoltaic systems with an installed capacity totalling 10.3 megawatts are to be transferred to Einhundert's operations by the end of the year. The systems are expected to supply more than 10,000 tenants across Germany with locally generated solar power. This is expected to save around 4,000 tonnes of CO2 per year.

ENGIE Deutschland GmbH is committed to accelerating the transition to a carbon-neutral economy. In Germany, the company plans, builds, operates and markets wind, photovoltaic and hydropower plants as well as pump storage and battery storage systems. Engie trades in electricity and gas and supplies end customers with energy.

The transaction was led by Dr Barbara Mayer, Christian Burmeister and Peter Meisenbacher at ADVANT Beiten. 

Einhundert Energie GmbH has been supporting real estate companies in the electrification and decarbonisation of their building portfolios since 2017. The Cologne-based company enables housing companies and their tenants to participate in the energy transition. The aim is to use 100 per cent CO2-neutral energy from local PV systems.

Consultant Solarimo:

ADVANT Beiten: Dr Barbara Mayer (Corporate/M&A, Freiburg), Christian Burmeister (Corporate/M&A, Freiburg/Berlin), Peter Meisenbacher (Public Sector/Energy, Freiburg/Berlin, all lead partners), Dr Erik Schmid, Alexander Gräßel (Labour Law, Munich/Freiburg).

Consutant Einhundert Energie:

Noerr: Dr Christoph Thiermann, Dr Christian Haagen (Munich/London)

Public Relations

Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Dr Barbara Mayer
Rechtsanwältin
ADVANT Beiten
+49 (761) 15 09 84 - 14
Barbara.Mayer@advant-beiten.com

Christian Burmeister
Rechtsanwalt
+49 (761) 15 09 84 - 18
Christian.Burmeister@advant-beiten.com

This is a blank check for the future government to borrow a theoretically unlimited amount for defence and security. This is also a significant increase compared to the (currently not yet exhausted) "special fund" from 2022, which was limited to 100 billion euros. It remains to be seen how high the new federal government will actually set defence spending, but considerable increases are to be expected.

The specific services to be procured have not yet been determined. It is planned to draw up a priority list for urgently needed armaments in the near future, from which initial details will emerge. 

How will it be possible for foreign companies to participate with their services in this massively increasing defence budget? The usual answer to this question would be: by participating in procurement procedures that are published in advance in the Official Journal of the EU. However, this answer does not apply without restriction in the defence sector anyway, as special procedural rules apply in some cases. These special rules have already been significantly extended for the "special fund" from 2022; the potential coalition partners from CDU/CSU and SPD are also planning to present a new law to speed up and simplify procurement within the first six months of forming a government.

In view of the still unclear situation as to which services are to be procured in which order and the expected simplification of procurement processes, it will therefore be crucial for foreign companies in particular to position themselves proactively with their products. With our experience in the defence and security sector, we can provide you with the following practical tips:

1. Understand the structures in the defence procurement sector
   
   The procurement of defence equipment in Germany is organized on a decentralized basis. In addition to the political level, the Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support (BAAINBw), which handles the actual procurements, plays a decisive role. However, the role of the Bundeswehr Planning Office, which is usually involved in the run-up to procurement measures, in the upcoming decisions on the services to be procured has not yet been clarified and should be carefully observed.
   
    
2. Position your services at an early stage
   
   Particularly in view of the lack of clarity about which services should be procured and in what order, there are currently clear opportunities to position your own products. However, swift, proactive action is required here - once the priorities have been established, it will be very difficult to bring a product that does not fall under these priorities into the discussion.
   
    
3. Make your company known
   
   In general, it is essential that your company, your expertise and your product portfolio are known in the right places. This is the only way to have a chance of being involved in specific procurement measures. Relying on open competition is a risky strategy in view of the expected simplification of procedures.
   
    
4. Look for partners
   
   Establish contacts with established (especially national) companies in the defence industry in order to benefit from their experience and networks and go to market together.
   
    
5. Get professional support
   
   Whether in the run-up to or within a procurement measure - the public client in the defence sector is a "special" customer. Different stakeholders must be taken into account, who regularly have heterogeneous interests. If you are not familiar with the particularities of the German defence sector, you could easily end up with nothing - regardless of the quality of your products.
    

If you need support with your market access in the German defence sector, we can assist you. We have been advising public clients for more than 20 years, especially in the defence sector. As a result, we have first-hand knowledge of the existing structures and the key players in defence procurement. We are happy to share our expertise with you - from the initial contact to support in a specific procurement process.

Michael Brückner

Understanding the Dual Investment Strategy

Let's examine both components of this historic financial commitment: 

The EUR 500 billion Infrastructure Special Fund

This fund, dedicated to rebuilding Germany's deteriorating infrastructure, will be deployed over ten years and represents more than one-tenth of Germany's GDP. SPD leader Lars Klingbeil emphasized that "Germany is running on wear and tear" and requires massive investment to modernize its roads, bridges, railways, and digital networks.

The Defence Spending Reform is equally significant. The constitutional debt brake (Schuldenbremse) will be modified: It will exempt defence spending above 1% of GDP from debt restrictions, allow theoretically unlimited credit-financed defence expenditures, and enable Germany to meet and potentially exceed NATO's 2% of GDP target for defence spending. CDU leader Friedrich Merz has called for a "whatever it takes" approach to defence, signalling a political commitment to substantial military modernization in response to evolving security threats in Europe.

Business Opportunities in Defence

The defence spending reform creates extensive opportunities for international defence contractors and related businesses:

1. Military Equipment and Systems Modernization

With the potential for substantially increased defence procurement budgets, companies in these areas stand to benefit:

• Land systems: Manufacturers of armoured vehicles, artillery systems, and ground equipment will see increased demand as Germany upgrades aging systems.
• Naval capabilities: Companies specializing in submarine technology, naval vessels, and maritime systems will find opportunities as Germany strengthens its naval forces.
• Aerospace and air defence: Producers of fighter aircraft, air defence systems, and military drones will benefit from Germany's focus on aerial capabilities
• Command, control, and communications: Providers of advanced C4ISR systems (Command, Control, Communications, Computers, Intelligence, Surveillance, and Reconnaissance) will see growing markets.

2. Defence Technology and Innovation

Investment will flow to cutting-edge defence technologies beyond traditional defence equipment:

• AI and autonomous systems: Companies developing artificial intelligence for defence applications, including autonomous vehicles and decision-support systems.
• Cybersecurity and electronic warfare: Firms specialising in protecting military networks and developing electronic warfare capabilities will be essential as warfare becomes increasingly digital.
• Space-based defence capabilities: With growing recognition of space as a military domain, companies providing satellite technology and space-based intelligence systems will find new opportunities.

3. Defence Supply Chain and Services

The broader defence ecosystem will also benefit:

• Logistics and supply chain management: Companies that can optimize military logistics and supply chains.
• Training and simulation: Providers of advanced training solutions using virtual reality and augmented reality for military personnel.
• Maintenance, repair, and overhaul (MRO): Firms specialising in the maintenance of complex military systems throughout their lifecycle.

Business Opportunities in Infrastructure

The EUR 500 billion infrastructure fund will create enormous opportunities across multiple sectors:

1. Transportation Infrastructure

Germany's aging transportation networks require comprehensive modernization:

• Bridge construction and rehabilitation: There are thousands of bridges in need of repair or replacement. Companies with expertise in accelerated bridge construction will be in high demand.
• Road development and maintenance: Firms specializing in highway construction, smart road systems, and sustainable pavement technologies.
• Railway modernization: Companies with expertise in high-speed rail, signalling systems, and railway electrification as Germany pushes to improve its rail network.

2. Energy Infrastructure

Germany's infrastructure plans make the energy transition a priority:

• Renewable energy systems: Developers and manufacturers of wind, solar, and other renewable energy technologies.
• Energy storage solutions: Companies offering grid-scale batteries and other energy storage technologies to complement renewable energy.
• Smart grid technology: Providers of intelligent energy distribution and management systems.
• Hydrogen infrastructure: Firms specializing in hydrogen production, storage, and distribution as Germany invests in this emerging energy carrier.

3. Digital Infrastructure

Germany's digital transformation is a critical component of infrastructure modernization:

• Broadband and 5G deployment: Telecommunications equipment providers and network deployment specialists.
• Data centres and cloud infrastructure: Companies building and operating the physical foundation of digital services.
• Smart city technologies: Providers of integrated urban management systems that connect transportation, energy, and public services.

4. Environmental and Climate-Resilient Infrastructure

Germany will prioritise infrastructure that supports climate goals:

• Flood protection and water management: Companies specialising in flood defence systems and sustainable urban drainage.
• Climate-adaptive infrastructure: Firms designing infrastructure that can withstand extreme weather events.
• Carbon-reducing building materials: Providers of innovative, low-carbon materials for infrastructure projects.

The Common Challenge: German Bureaucracy

Despite the massive financial commitment across both defence and infrastructure, foreign companies must understand that Germany's administrative processes remain a significant challenge. The same bureaucratic hurdles affect both sectors:

Administrative Realities in Germany

• Planning and approval processes for major infrastructure projects can take up to 5-18 years.
• Defence procurement processes are notoriously complex and slow-moving.
• Multiple levels of government involvement create coordination challenges.
• Environmental, historical, and social impact assessments add layers of complexity.

These administrative challenges mean that despite the availability of funds, actual project implementation may lag significantly. It is likely though that this will be changed by the Union and the SPD as well. However, companies should have experienced experts at their sides when dealing with the German administration.

Strategies for Success in both Markets

To maximize opportunities in both defence and infrastructure, it is recommended to:

1. Form strategic partnerships: Consider joint ventures or partnerships with established German companies that understand the administrative landscape and have existing relationships.
2. Invest in regulatory expertise: Build teams that understand Germany's complex regulatory environment, including defence procurement rules and infrastructure approval processes.
3. Offer integrated solutions: Companies, that can demonstrate how their offerings address both technical requirements and administrative efficiency, will have advantages.
4. Emphasize sustainability and security: Projects that demonstrate alignment with Germany's dual commitment to environmental sustainability and enhanced security will receive priority.
5. Be patient but persistent: Adjust business expectations for the reality of German administrative timelines while continuously engaging with stakeholders.

Sectoral Convergence: Where Defence Meets Infrastructure

An interesting aspect of Germany's dual investment approach is the growing convergence between defence and infrastructure priorities. Companies positioned at this intersection will find particularly valuable opportunities:

Areas of Convergence

• Critical infrastructure protection: Solutions that secure energy grids, transportation systems, and communications networks against physical and cyber threats.
• Dual-use technologies: Technologies with both civilian and military applications, such as advanced materials, autonomous systems, and certain types of sensors.
• Resilient supply chains: Systems and services that ensure continuity of critical materials and components for both defence and infrastructure.
• Energy security: Solutions that enhance Germany's energy independence, a concern for both economic and defence reasons.

A Dual Opportunity for International Business

Germany's historic investment in both defence and infrastructure represents a rare dual opportunity for international companies. The scale of investment is unprecedented, creating markets that will evolve over the next decade and beyond. Success will require a nuanced understanding of Germany's unique administrative environment, patience with its bureaucratic processes, and the ability to demonstrate value beyond mere technical capabilities. Those companies that position themselves as partners in Germany's transformation – helping not just to rebuild roads or modernize military capabilities, but to improve the systems by which these goals are achieved – will find themselves at the forefront of this historic opportunity. Foreign companies willing to make this investment in understanding and adapting to the German context will find substantial rewards in the next decade as Germany reinvents both its physical infrastructure and its security posture in response to evolving global challenges.

Do you have any questions? Do not hesitate to contact us.

Dennis Hillemann
Johannes Voß-Lünemann

The new reality - defence technology as a growth market

The global political situation has escalated dramatically in recent years. With the ongoing war in Ukraine, increasing tensions in various regions of the world and general uncertainty, we are experiencing a historic turning point. The much-cited "turning point" has long since become a reality - and with it, considerable sums are flowing into defence.

This opens up completely new perspectives: Companies that previously only manufactured civilian products are now seriously considering whether and how they can make their technologies and expertise usable for the defence sector. For medium-sized companies with technological expertise in particular, the question arises: What funding opportunities are there for entering the defence technology sector?

Here is an up-to-date overview of the most important programmes and instruments that will be available at the beginning of 2025:

European Funding Opportunities

European Defence Fund (EDF) - the flagship of EU funding

The European Defence Fund (EDF) will provide around 1.065 billion euros for defence research and development in 2025. Particularly interesting for newcomers: 4% of the budget is reserved for "disruptive" technologies and a further 6% for innovative projects focussing on SMEs.

The current 2025 work programme comprises 33 topics in nine tenders - from ground combat and cyber defence to environmentally friendly technologies. The focus is on projects such as cyber defence, marine and underwater capabilities and sensor systems.

Funding conditions in brief:

• Applications must generally be submitted by consortia of at least three independent organisations from three EU Member States
• Two partners from two countries are sufficient for disruptive technology projects
• Only companies/organisations based in the EU or Norway are eligible for funding
• Depending on the project type, the funding rate is up to 100% (especially for pure research)
• There are bonus points for the participation of SMEs

Important for your planning: The tenders have been running since mid-February 2025 and the deadline for submitting project applications is 16 October 2025.

Defence Equity Facility – capital for innovative startups

Another exciting opportunity is the Defence Equity Facility (DEF) which was launched at the beginning of 2024. This venture capital fund has a volume of 175 million euros and seeks to mobilise private venture capital for defence technology innovations with dual-use potential.

The DEF does not invest directly in companies, but in specialised private funds which in turn invest in security and defence companies. It is planned to initiate investments of up to 500 million euros in defence-related startups and SMEs by 2027.

The DEF could facilitate access to urgently needed growth capital, especially for innovative startups that develop new technologies such as AI, sensor technology or cyber security.

German Funding Opportunities

Dual-use potential in civil innovation programmes

An approach that is often neglected or ignored is to apply the classic innovation funding programmes such as ZIM (Central Innovation Programme for SMEs) or KMU-innovativ. Although these programmes are primarily civilian in nature, they can also be relevant for defence technology under certain circumstances.

The Federal Ministry for Economic Affairs and Energy is generally open to all technologies when it comes to ZIM. Defence technology companies can also receive ZIM grants, provided the project content can be used for civilian purposes - such as new material technologies, electronics or AI applications that could later be used for military purposes.

The same applies to BMBF programmes such as KMU-innovativ which offer calls for tenders in fields such as AI, electronics or security technologies. Although direct defence topics are excluded, security and defence as an area of application can benefit indirectly.

Cyber Innovation Hub of the Bundeswehr (German armed forces)

The Cyber Innovation Hub of the Bundeswehr (CIHBw) serves as an interface between the start-up scene and the Bundeswehr. It was launched as a pilot project to bring military users together with civilian innovations.

The CIHBw strengthened its partnerships in 2025. Particularly noteworthy is the strategic partnership concluded with the University of the Federal Armed Forces Munich on 11 February 2025. This alliance aims to closely link research and innovation with the requirements of the troops.

The hub also offers support for intrapreneurship and regularly organises innovation challenges - an exciting opportunity for innovative companies to develop their solutions directly with the Bundeswehr.

Strategic Orientation - What Is Being Promoted?

Anyone wishing to enter the defence sector should be guided by the National Security and Defence Industrial Strategy adopted in December 2024. This strategy defines clear key technologies that are prioritised for future funding:

• IT and communication technologies for military purposes
• Artificial intelligence (AI) and autonomous systems
• Naval shipbuilding
• Government shipbuilding
• Protected/armoured vehicles
• Sensors (reconnaissance, radar, optoelectronics)
• Protection technologies and electromagnetic combat

Other critical areas include quantum technologies, missiles and air defence, space technologies, munitions and unmanned systems (unmanned aerial vehicles).

Projects that fall into these categories have a much better chance of receiving funding and being awarded long-term contracts.

Practical Tips for Beginners

As experienced lawyers with a view to funding practice, we would like to give you some practical tips:

1. Use existing expertise: Cooperate with established companies in the defence industry to benefit from their experience.
2. Think dual-use: Develop technologies that can be used for both civil and military purposes. This strategy maximises your funding opportunities.
3. Form consortia: Cooperation with partners from other EU countries is essential for the European Defence Fund. Establish networks at an early stage.
4. Pay attention to safety aspects: The defence industry is subject to special security requirements. Make sure that your company fulfils the necessary requirements.
5. Plan early: The application deadlines are often long and the procedures complex. Start preparing at least six months before the deadline.

Conclusion - A Market in Transition

The current global political situation has caused fundamental changes in the defence sector. The massive investment in European security is creating completely new business opportunities - even for companies that were previously active in other areas.

The funding programmes presented offer various entry options. The combination of European funds (EVF) for research and development with national programmes for concrete implementation is particularly promising.

Those who act strategically now and adapt their civil expertise to the defence sector can benefit from this growth market in the long term.

Do you have questions about funding for defence technologies or need support with your application? Contact us - we will be pleased to help you!

Dennis Hillemann
Johannes Voß-Lünemann

Introduction

The discussion about the irrebuttable presumption of joint action where there are family connections in business affiliations continues to cause confusion and considerable legal uncertainty with regard to their final accounts. In particular, the publication of the new guidelines by the Federal Ministry of Economics and Technology (Bundeswirtschaftsministerium, BMWK) on 19 July 2024 has not made the situation any easier, but has led to more controversial issues instead. The current practice of the granting authorities remains confusing.

Irrebuttable presumption or just a general rule?

Until mid-2024, the general rule of the granting practice was that family ties (for instance between spouses, parents and children or siblings) were always regarded as the basis of a business affiliation. This irrebuttable presumption (unwiderlegbare Vermutung) in many cases led to businesses being classified as affiliated although they operated independently.

With the new guidelines of 19 July, the BMWK appears to have watered down this general principle. It no longer speaks of an irrebuttable presumption, but merely of joint action to be 'generally' assumed where there are family connections. At the same time, it emphasises that atypical cases must be taken into account.

This statement, however, raises new questions:

• What is an atypical case? The guidelines do not provide any clear criteria as to which constellations could deviate from the general rule.
• Legal uncertainty: granting authorities and applicants must assess for themselves whether their situation constitutes an atypical case, something that will inevitably lead to inconsistent assessments and legal disputes.

Moving backwards: practice in Bavaria and other German federal states

While the BMWK gives the impression that the irrebuttable presumption has been abandoned, policies practiced in Bavaria point in a completely different direction. A circular from the Chamber of Industry and Commerce for Munich and Upper Bavaria dated September 2024 confirms that:

• The concept of the irrebuttable presumption still applies in Bavaria.
• No atypical cases are recognised, unless the individuals involved are travelling showpeople or divorced spouses.

This directly contradicts the BMWK's stance that administrative practice must leave room for deviating decisions. It becomes clear that the implementation of the guidelines continues to depend heavily on the regional granting practice, which can lead to considerable distortions of competition.

Other German federal states have not yet taken a clear position on what could be an atypical case either. We see different statements on the issue in practice. As a rule, atypical cases should be cases that deviate so far from the standard that it would be disproportionate to rely on the presumption. The question of when this should apply, however, remains completely open.

Conflict: guidelines and administrative practice

The inconsistency between the BMWK guidelines and regional practice reveals a fundamental conflict:

• BMWK position: in our view, the FAQs and the guidelines are intended to ensure uniform administrative practice nationwide and fair competition between companies. The granting authorities, however, dispute this, arguing that only their administrative practice matters.
• Granting authorities: administrative practice is defined at state level and the FAQs are not regarded as binding law.

This contradiction poses a dilemma for companies and tax consultants: should they rely on the BMWK's nationwide interpretation or strictly adhere to the statements of the regional granting authorities?

Practical consequences and risks for tax consultants

The legal uncertainty surrounding the topic of business affiliations entails considerable risks, particularly for tax consultants who advise their clients on these issues. Typical challenges:

1. Incorrect assessment of an atypical case: tax consultants run the risk of misclassifying family connections, which can lead to repayment claims and potential liability claims.
2. Ignoring the administrative practice of the relevant federal state: even if the BMWK guidelines formally apply, the granting authorities decide on the basis of their own administrative practice.
3. Neglected documentation: without clear and full documentation, including cover letters or expert opinions, clients have almost no protection against claims for repayment.

Recommendations

• Cover letter: every application or final account statement should be accompanied by a legally sound cover letter detailing the individual situation. Such letter can (and should in many cases, especially in contentious ones) also be submitted later. Tax consultants' chambers have informed their members that it is important to justify any deviation from established administrative practice in writing.
• Obtain an expert opinion: in complex cases, an experienced lawyer should be involved to minimise risks.
• Be honest: all relevant family connections and business structures should be disclosed to avoid later sanctions.

An outlook on possible legal developments

The inconsistencies between the FAQs, the new guidelines and regional practice will inevitably end up in court. It is foreseeable that these disputes will go as far as the German Federal Administrative Court (Bundesverwaltungsgericht) or even the European Court of Justice. The focus is particularly on the following question:

• Binding nature of the FAQs: are the guidelines of the BMWK actually binding or can granting authorities set their own rules?
• Is the current practice compatible with constitutional law, in particular Article 6 of the German Basic Law (Grundgesetz) (protection of marriage and family) and Article 3 of the Basic Law (principle of equal treatment)?
• Is the interpretation of the granting authorities compatible with EU law, especially EU fundamental rights?

Tax consultants and companies should therefore be prepared for lengthy disputes and document their cases as well as possible. Experienced lawyers should be consulted in the event of queries from the granting authorities on the subject of business affiliations and families.

Conclusion

The confusion about the irrebuttable presumption for business affiliations once again shows the challenges and uncertainties in dealing with the temporary coronavirus aid. Companies and tax consultants must adapt to regional deviations and at the same time keep an eye on the BMWK's nationwide line.

It is essential for tax consultants to comprehensively inform their clients and to obtain legal support in order to minimise potential liability risks. You can also use the temporary aid network to exchange information with other experts and keep up to date with the latest developments.

We at ADVANT Beiten will be happy to assist you. Please feel free to contact us at any time.

Dennis Hillemann
Tanja Ehls

Dennis Hillemann, a licensed administrative law specialist, advises enterprises and public entities on administrative law, particularly on administrative procedural law and the law on subsidies – to a large part on state aid COVID temporary programmes - and represents clients before administrative courts.
At present, the trio mainly provides legal advice to tax advisors and companies throughout Germany regarding applications for aid temporary programmes as well as in objection proceedings and court proceedings.

Another key area of the team is advice to companies and universities on applications for subsidies and a use of subsidies which is compliant with state aid law. Johannes Voß-Lünemann additionally advises on procurement law issues, for example providing support regarding tenders under national and EU procurement law, both for supplies and services and for construction services.

"ADVANT Beiten has been one of the leading players when it comes to scalable and technology-supported legal services for many years now. In combination with his long years of experience and expertise in administrative and procurement law, Dennis Hillemann and his team complement our practice ideally. We are very much looking forward to the cooperation across locations," comments Dr Guido Krüger, Managing Partner of ADVANT Beiten.

Dennis Hillemann comments: "Joining ADVANT Beiten is the ideal next step for us. The multidisciplinary structure of the law firm with strong teams at all important locations in Germany enables us to provide our clients with even more comprehensive advice. In particular, the close integration of the various specialist areas and the technological orientation of ADVANT Beiten offer optimal conditions for the support of complex public law assignments. With the firm's broad network and established legal tech expertise, we can provide our services even more efficiently throughout Germany, particularly with regard to state aid COVID temporary programmes. The cooperation across the offices in Hamburg, Frankfurt and Berlin enables us to be close to our clients, while at the same time making ADVANT Beiten's entire range of expertise available to them.”

Public Relations
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Background

The new EU regulation on foreign subsidies 2022/2560 ("Foreign Subsidies Regulation" or FSR) has become an important tool of subsidy control since its entry into force. The FSR contains rules that enable the European Commission to address distortions caused by foreign subsidies, and thereby allows the EU to ensure a level playing field for all companies operating in the EU internal market comprising 27 countries, while remaining open to trade with and investment from third countries. The FSR applies to foreign subsidies granted to companies engaging in economic activities in the EU, regardless of their ownership, legal structure or origin, and this to merger and acquisitions as well as participation in public tenders. The rules complement those concerning imports of subsidized goods.

Chinese subsidies were often investigated 

There has been a greater number of cases than expected and the attention has primarily focused on merger and acquisitions. The European Commission expected some 30 notifications in the year 2024 but was dealing within the first 100 days with pre-notification discussions in over 50 M&A cases. The cases examined ranged from mergers within the same Member State to mergers between EU and non-EU countries. The cases came from a wide variety of sectors, ranging from basic industries to fashion retail and high-tech sectors; for instance the planned acquisition of a telecommunication provider's pension fund by a State-controlled actor telecommunications provider domiciled in the United Arab Emirates. 

The Commission highlights the fact that an investment fund was involved as the notifying party in around a third of the cases. (It should be noted that M&A projects may also be subject to EU- or national merger control rules and the screening rules concerning foreign investment in sensible sectors.)

As regards the participation of non-EU companies in public tenders, to date, the Commission has opened: in-depth investigations following public tenders notifications for solar photovoltaic supplies in Romania and electric “push-pull” trains in Bulgaria, ex officio investigations in wind turbine supplies for wind parks in Romania, Greece, Bulgaria, Spain, and France; and security equipment, including a dawn-raid at the producer’s premises in the Netherlands. The Commission decision ordering the inspection in the security equipment case is contested by the company in court.

All but a few of the Commission's in-depth investigations concerned Chinese companies that may have received potential subsidies from China. While the FSR is designed to be country-neutral, as a matter of fact mostly Chinese subsidies were scrutinized, as the Chinese economy is the world's second biggest with Chinese companies investing in the EU and participating in public tenders.

Chinese officials and industry groups have nevertheless repeatedly criticized the EU’s FSR, arguing the regulation is just another protectionist tool created by the EU to target Chinese businesses. In July China's Ministry of Commerce announced that it launched a trade and investment barrier investigation into EU's related practices in its investigations of Chinese enterprises based on the FSR. 

The outcome of the investigations so far is mixed. In some cases, the companies withdrew or modified their projects.  In March 2024, Chinese train maker CRRC withdrew from a EUR 610 million public tender for a Bulgarian railway project, after the EU launched an investigation into the bid under the FSR framework. In other cases, offers were even withdrawn without a formal investigation opened.

Preliminary Clarifications

In a speech in April 2024, Competition Commissioner Margrethe Vestager outlined the direction for the Commission's enforcement efforts and criticised distortions of competition caused by subsidies granted by non-EU countries. She emphasised that in some markets, Chinese companies repeatedly offer significantly lower prices than EU companies, which are allegedly financed by State aid from third countries and often include payment deferrals that are not granted to EU companies. This practice leads to a considerable competitive disadvantage for EU companies, especially in sectors such as solar or wind energy. 

In July 2024 the European Commission published a Staff Working Document providing preliminary guidance concerning the distortion test under the new rules. 

The Commission mentions that in the context of M&A transactions, different standards of review apply under the FSR and under the European Merger Regulation, as the two procedures serve different purposes. Consequently, the two procedures can also lead to different results. 

In the context of public procurement procedures, the Commission's review is however limited to the specific public procurement procedure and the distortion test applied is different for M&A deals than it is for public tenders. The Commission only examines whether the respective public procurement procedure is potentially distorted by the foreign subsidies. Only those third-country subsidies are relevant that enable a specific economic operator to submit a bid that is unjustifiably favourable in relation to the tendered services.

Beyond that nothing new emerges from the clarifications.

Early planning is the key

A major challenge for companies remains obtaining and preparing the right data for an eventual review of their bid. In particular, companies potentially subject to the obligations under the FSR must consider preparing and setting up a comprehensive and complete information gathering process to collect the necessary FSR data on a global and group-wide basis for the last three years at the same time or before launching a bid or participating in a tender. The correct identification of reportable foreign financial contributions, their precise differentiation from those categories that are most likely to distort competition, as well as a prudent interpretation of the exemptions granted, is essential in this context. Legal tech solutions and the early involvement of experts can help.

Outlook for the future

As the FSR consists of a novel legal framework, companies face significant uncertainty in assessing when non-EU subsidies may be problematic. Pending further guidance, it is more likely that certain case characteristics will require detailed questioning or a longer-term review based on EU enforcement practice. 

The establishment of information systems will continue to pose challenges for companies. At this point, we recommend that affected companies plan to collect and organize information at an early stage. We will continue to monitor further developments in the area of FSR and are ready to assist companies concerned. 

Prof. Dr Rainer Bierwagen
Lucas Nowottny

Dusseldorf-based Flamonitec is a global leader in the development, manufacture and sale of flame monitoring systems and other combustion technology components as well as the development and marketing of environmental technology and processes, particularly in the fields of control, regulation, sensor technology and image processing. The company has an international customer base. The solutions developed by Flamonitec in more than fifty years in the business are protected by numerous patents.

Alder is an investment fund based in Stockholm, Sweden, aiming to ensure the sustainable, long-term development of technology and service companies. Flamonitec is the first acquisition in a consolidation initiative by Alder within advanced measurement and monitoring technology, especially for the combustion industry.

The sales process was structured and organised by the M&A consulting firm Mayland AG of Dusseldorf.

Advisor to Flamonitec | BFI Automation Mindermann GmbH:
ADVANT Beiten: Dr Christof Aha, Maik Merkens (both Lead Partners), Mark Thönißen, Felix Busold (all Corporate/M&A, Frankfurt), Leopold Linden (Real Estate, Frankfurt), Christian Hipp (Public Law, Berlin). 
CMS Wistrand: Sascha Schäferdiek, Louise Berlin

Advisor to Alder AB:
White & Case: Dr Matthias Kiesewetter, Dr Maximilian Eichhorn, Isak Brunecevic, Andreas Lexhag, Dr Nico Frehse

Media Contact
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Dr Christof Aha
Rechtsanwalt
ADVANT Beiten
+49 (69) 756095 - 451

Peter Meisenbacher will join ADVANT Beiten as a Salary Partner at the Freiburg office on 15 September this year and will work closely with his Berlin energy law colleagues in the Public Sector practice group. At the same time, there will be close cooperation with the Freiburg partners who advise clients from the energy sector in commercial and corporate law as well as in M&A transactions (most recently at ADVANT Beiten and ADVANT Nctm advise BKW on expansion of its interest in HelveticWind). Freiburg has traditionally been a strong centre in the field of renewable energies, particularly thanks to the Fraunhofer Institute ISE and INTERSOLAR / The smarter E Europe, Europe's largest trade fair alliance for the energy industry, which is co-organised by the Freiburg Economic Development Agency and has been legally supported by ADVANT-Beiten for many years. In this environment, Peter Meisenbacher's expertise in energy law is a valuable addition. 

Peter Meisenbacher (37) advises comprehensively on renewable energy law with a focus on civil law at the interface with energy law. Due to his many years of experience in the field of renewable energies, he advises project developers, investors and banks as well as local authorities and municipal utilities throughout Germany and internationally on the realisation of energy projects. One of his main focuses is the realisation of photovoltaic projects. Before joining Sterr-Kölln & Partner, Peter Meisenbacher worked for several years at Becker Büttner Held, where he worked together with Dr Malaika Ahlers and advised companies on all issues they face as consumers, electricity and heat suppliers or network operators.

‘The energy sector represents a particular focus at ADVANT Beiten. Our interdisciplinary, cross-office team is growing continuously so that we are optimally positioned for the constant change that the industry is undergoing,' explains Dr Malaika Ahlers and adds: ’We are pleased to have won another very experienced expert in Peter Meisenbacher, whose expertise, primarily in the important renewable energies segment, is an ideal fit for us: a perfect match. 

Dr Jan Barth, head of the Freiburg office, is pleased about the expansion of his expertise: 'We started in 2022 as a pure corporate/M&A office and are constantly expanding our range of advice, first with employment law and now with public law and energy law.'

Public Relations
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

The Terreal businesses to be acquired by Wienerberger are expected to generate revenues of EUR 740 million and a run-rate EBITDA of approx. EUR 100 million in 2022. The enterprise value of the respective Terreal businesses amounts to EUR 600 million, subject to customary adjustments. The acquisition agreement was signed at the end of December, marking the start of the exclusive negotiation phase. The closing is expected to occur in the course of 2023.

The merger control part of the transaction is led by ADVANT Beiten partners Uwe Wellmann and Christoph Heinrich who are jointly responsible for German merger control and coordinate a team of law firms in various jurisdictions. Cross-border merger control advice is provided in cooperation with, inter alia, ADVANT Altana in France, Binder Grösswang in Austria, Woźniak Legal in Poland and Radovanović Stojanović & Partners in Southeastern Europe.

The M&A work stream was led by E+H (Vienna, Graz). ADVANT Beiten partner Dr. Mario Weichel took over its German part and together with a multidisciplinary team performed the legal due diligence on the Creaton business. ADVANT Altana was responsible for the French due diligence.

Advisers to Wienerberger:
ADVANT Beiten: Uwe Wellmann (Berlin) and Christoph Heinrich (both lead partners, both Competition law), Dr Mario Weichel, Maximilian Matusewicz (both Corporate/M&A), Cathleen Laitenberger (Competition Law), Anja Fischer (Real Estate), Katrin Lüdtke and Philipp Früh (both Public Law), Christian Hess (IP), Michael Ziegler and Petra Fendt (Finance), Chiara Peterhammer (Commercial, all Munich), Nima Valadkhani (Commercial), Wolf J. Reuter (Employment Law) and Dr Ariane Loof (Data Protection, all Berlin).

Media Contact
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Uwe Wellmann
Lawyer
ADVANT Beiten
+49 30 26471-243
uwe.wellmann@advant-beiten.com

The transaction is structured as a share deal whereby Aurelius will acquire the specific legal entities, i.e. Sappi Stockstadt GmbH, Sappi Maastricht Real Estate B.V. (including its subsidiary Sappi Maastricht B.V.), Sappi Finland I Oy and Sappi Finland Operations Oy, which own and control the assets and liabilities of the individual mills.

The enterprise value of the transaction amounts to approximately EUR 272 million and the consideration consists of cash proceeds and retained receivables as well as retained liabilities. The transaction is expected to close in Q1 2023, subject to various standard suspensive conditions.

Sappi is a global leader in dissolving pulp and paper-based solutions, headquartered in Johannesburg, South Africa. It has over 12,000 employees, manufacturing facilities in ten countries spanning over three continents and customers in over 150 countries worldwide.

Advisors to Sappi Limited:

Advant Beiten: Dr Christoph Schmitt (Lead Partner; Banking & Finance) and Dr Markus Ley (Lead Partner, Corporate Law); Dr Mario Weichel and Maximilian Matusewicz (both Corporate Law); Dr Gerald Müller-Machwirth and Maike Pflästerer (both Employment Law); Katrin Lüdtke and Philipp Früh (both Public Law); Anja Fischer (Real Estate); Susanne Klein (IT Law and Data Protection) as well as Christoph Heinrich, Dr Christian Heinichen and Cathleen Laitenberger (all Antitrust and Competition Law).

Stibbe is advising on the Dutch law aspects and Fondia is advising on the Finnish law aspects of the transaction.

Media Contact
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
Frauke.Reuther@advant-beiten.com

Markus Ley
Rechtsanwalt
ADVANT Beiten
+49 (89) 35 0 65 - 1211
Markus.Ley@advant-beiten.com

Advisors to PL-Immo-Verwaltungs GmbH: 
ADVANT Beiten: Florian Baumann (in charge, Real Estate), Katrin Lüdtke (Public Sector, both Munich).

Media Contact
Frauke Reuther
Manager Kommunikation
ADVANT Beiten
+49 (69) 75 60 95 - 570
frauke.reuther@advant-beiten.com

Florian Baumann
Lawyer
ADVANT Beiten
+49 89 35065 - 1436
Florian.Baumann@advant-beiten.com