Munich—Global law firm Dentons has secured an important victory for its long-standing US-based client NeXovation Inc. Today, the European Court of Justice ruled that the European Commission was wrong in its 2014 ruling that the sale of the Nürburgring assets to the Capricorn Group was legal. As a result, the European Commission must now re-examine whether the 2014 sale of the Nürburgring was below market price and thus involved the granting of State aid.

The proceedings surrounding the Nürburgring were among the most complex EU State aid proceedings in recent years and attracted a great deal of media attention. 

After attempts at private financing failed, the state government of Rhineland-Palatinate made intensive efforts to turn the state-owned racetrack into a modern leisure park. This drew the attention of the European Commission. Following complaints in 2012, it initiated a formal investigation. In October 2014, it ruled that illegal State aid had been granted and demanded the repayment of this aid. At the same time, however, it concluded that the meanwhile sale of the Nürburgring assets to the private Capricorn Group had been in line with State aid law principles. It could not find that the bidding process had been flawed. Since the bidding process had been compliant, the European Commission concluded that the sale had taken place at the market price and therefore did not contain any aid in favor of the purchaser. 

NeXovation, which had also participated in the bidding process, had a different view. In June 2015, the company filed an action against the European Commission's decision before the 1st instance General Court of the European Union (parallel proceedings were also brought by the “Ja zum Nürburgring” (Yes to Nürburgring) initiative). These proceedings alone lasted four years, making them one of the longest in recent times. The General Court confirmed the Commission's decision in June 2019.  NeXovation appealed, and the decision issued today by the Court of Justice (C-665/19 P) marks the successful culmination of that appeal. 

“Having consistently argued in favor of NeXovation since 2014, we are very pleased that the Court of Justice has taken up one of our core arguments that the sales procedure was discriminatory. Now the European Commission must look into the case again in detail," said Dentons partner and Sate aid lawyer, Dr. Matthias Nordmann, who was the lead partner in the case.

Advisors to NeXovation Inc:

Dentons (Munich): Dr. Matthias Nordmann (Partner, State aid law), Dr. Alexander von Bergwelt (Partner, Corporate/M&A), Alexander Reiner (Counsel, Corporate/M&A), Caglagül Koz (Associate, State aid law)

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