Germany’s SGB-SMIT Group has agreed to acquire a majority stake in Serbian transformer manufacturer COMEL Transformatori, expanding its presence in Southeast Europe as demand for electricity grid equipment continues to grow across the continent. The transaction is expected to close in the second half of 2026, subject to regulatory approvals, while the value of the deal and the size of the acquired stake have not been disclosed.
The acquisition brings a profitable Serbian electrical engineering company into an international transformer manufacturing group during a period of increased investment in transmission infrastructure, renewable energy integration and electricity network modernisation throughout Europe.
COMEL Transformatori generated approximately 2.5 billion dinars (€21 million) in revenue during 2025, compared with 2 billion dinars in the previous year. Net profit increased from 111 million dinars to 218 million dinars, resulting in a net profit margin of approximately 8.7%.
Manufacturing Capabilities Support Grid Modernisation
The Serbian company manufactures oil-filled transformers for distribution and transmission systems with ratings of up to 220 kV and provides repair and overhaul services for power transformers rated up to 420 kV. These capabilities position COMEL within the supply chain supporting transmission network upgrades, renewable energy connections and the refurbishment of ageing electricity infrastructure.
Across Europe, the availability of transformers has become a significant factor affecting electricity infrastructure projects. Utilities, industrial customers and renewable energy developers continue to face longer procurement lead times, higher material costs and limited specialised manufacturing capacity, while delayed transformer deliveries can postpone project energisation even after construction and generation facilities have been completed.
Regional Platform for Southeast Europe
The acquisition provides SGB-SMIT with a manufacturing and service base serving Serbia, Montenegro, Bosnia and Herzegovina, North Macedonia, Romania, Bulgaria and other Southeast European markets. The location supports regional maintenance operations while reducing transport requirements and response times for heavy electrical equipment, particularly where existing electricity networks require refurbishment rather than complete replacement.
The transaction also aligns with Serbia’s growing investment pipeline in renewable energy and electricity transmission. Connection applications currently total approximately 12 GW on the transmission network and around 6 GW on distribution systems. Although only part of this pipeline is expected to be developed, it indicates continued demand for transformers, substations, protection equipment and associated engineering services.
Industrial Expansion Potential
The long-term impact of the acquisition for Serbia will depend on the role assigned to COMEL within the SGB-SMIT Group. Expanding manufacturing capacity, engineering employment and export activities would strengthen Serbia’s position in the European grid equipment supply chain, while a strategy focused primarily on regional servicing would have a more limited economic effect.
COMEL’s financial performance provides a foundation for further investment, while SGB-SMIT contributes international procurement capabilities, broader market access, product standardisation and an expanded customer base. The Serbian operation adds established engineering expertise together with a competitive manufacturing location. The transaction also reflects a broader shift in Serbia’s industrial mergers and acquisitions market, with electrical equipment manufacturing, grid services and specialised engineering becoming increasingly important as Europe expands investment in transmission infrastructure, renewable energy integration and energy security.
