Rheinmetall AG, a Germany-based producer of military vehicles, arms and components, systems and services for the security and civil industries through its subsidiary Rheinmetall Waffe Munition GmbH, the local manufacturer of calibre weapon systems and ammunition division of the Rheinmetall Defence Group, sold 48% of the shares in its Lithuanian subsidiary Rheinmetall Defence Lietuva, UAB to UAB EPSO-G acting through its investment company UAB EPSO-G Invest.
The target company Rheinmetall Defence Lietuva, UAB is planning to engage in the production and sale of artillery ammunition with a capacity of up to 155,000 projectiles. This transaction is a significant step towards strengthening the Lithuanian defence sector. It will ensure uninterrupted access to essential weapons and ammunition, as the products that European defence needs will be produced on Lithuanian soil.
TEGOS advised the buyer on all transaction-related matters: due diligence, negotiations of the share acquisition and joint venture documents, as well as various auxiliary agreements required for the production and sale of artillery ammunition. As the state-owned companies involved in this project are of national importance and the target is active in the military industry, the transaction was also subject to national security clearance in Lithuania.
Rheinmetall is a leading international systems supplier in the defence industry and a driver of technological and industrial innovations in the civilian markets. It aims to achieve CO2 neutrality by 2035.
The two Lithuanian state-owned companies and Rheinmetall partnered for this project in Lithuania. In Lithuania, this project is considered a large-scale investment project of national importance. This transaction will open up the path for future foreign investments into the Lithuanian defence sector.
