Strategic cooperation in European energy sector: CMS advises Siemens Energy on joint venture with Croatian firm KONČAR

Munich, 22.07.2024 – Siemens Energy and KONČAR d.d. (ZSE, KOEI) have signed a joint venture agreement for the production of transformer tanks. The deal will see KONČAR holding a 60% stake in KONČAR-Transformer Tanks, with Siemens Energy holding 40%. The joint venture will establish a transformer tank manufacturing facility at KONČAR’s Sesvetski Kraljevec site, significantly boosting production capacity. The European Union’s Green Transition initiative has led to surging demand for transformers, which prompted the two companies to form a joint venture aimed at meeting this demand. The agreement is subject to the usual regulatory conditions.

An international CMS team headed by partner Jörg Schrade advised Siemens Energy on all tax aspects of the joint venture. The advice related in particular to the joint venture agreement and shareholder agreement as well as structuring-related issues.

KONČAR is a leading Croatian company in the electrical industry. Its core business includes products, services and solutions across four segments: power generation, power transmission and distribution, rail transport and infrastructure, and digital solutions and platforms.

Siemens Energy is a global leader in energy technology. The company delivers technologies that support a sustainable energy future in the field of power generation equipment, transmission technologies, grid management, renewable energy, and digital solutions for the energy sector.

CMS Germany

Jörg Schrade, Lead Partner
Eduard Kosavtsev, Senior Associate, both Tax

CMS Croatia

Tamara Jelić Kazić, Partner
Marko Starčević, Senior Tax Manager
Mirta Klaić, Senior Associate, all Tax

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