Strategic transaction in the defence sector: CMS advises FFG on its merger with DEUTZ

Frankfurt/M. – The families that own FFG Flensburger Fahrzeugbau Gesellschaft mbH are planning, as part of a merger, to transfer all their shares in FFG to DEUTZ AG and to acquire a stake of up to 29.9 per cent in the DEUTZ Group. The transaction involves a consideration to be paid partly in cash and partly through the issue of new DEUTZ shares. The agreement is still subject to the approval of the DEUTZ shareholders at the extraordinary general meeting on 24 August 2026 and the standard regulatory approvals. The merger will create a leading provider for military vehicles, propulsion systems and energy solutions in Europe. The agreement sends a clear signal regarding the strengthening of technological sovereignty and innovative capacity in the defence sector, as well as the long-term safeguarding of highly skilled jobs.

A team from CMS, led by Dr Hendrik Hirsch and Dr Hilke Herchen, provided comprehensive advice to the owner families on the structuring, drafting and negotiation of the transaction agreement, the investment in DEUTZ AG, and all aspects relating to corporate law, capital markets law and regulatory matters. 

FFG Flensburger Fahrzeugbau Gesellschaft mbH is an established supplier of military land vehicles and special-purpose vehicles, and a partner to the armed forces in more than 15 countries. The company develops and manufactures its own platforms and is actively involved in NATO's multinational defence programmes.

DEUTZ is expanding its portfolio to include propulsion and energy solutions, ranging from conventional internal combustion engines and hybrid propulsion systems to decentralised power supply systems in the field. With its global service network and expertise in scaling operations, DEUTZ will ensure its continued technological and strategic development.

The families who were previously the owners of FFG will, as new anchor shareholders of DEUTZ, support the company's strategic orientation in the long term and aim to play an active role on the supervisory board. Their commitment supports the transformation and expansion of the defence segment within the Group.

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