26 Nov 18. Rheinmetall AG Confirms Talks Regarding The Potential Acquisition of a Stake In KNDS. Rheinmetall AG confirms talks with Wegmann Unternehmens-Holding GmbH & Co. KG regarding the possible acquisition of Wegmann Unternehmens-Holding GmbH & Co. KG’s stake in KMW + Nexter Defense Systems N.V. (“KNDS”), and therefore an indirect acquisition of Krauss-Maffei Wegmann GmbH & Co. KG (“KMW”), or other forms of cooperation with KNDS and/or KMW.
The Executive Board of Rheinmetall AG will analyze and review the possibility to successfully complete such transaction both from a legal and economic point of view; the possibility of such transaction depends on a variety of, inter alia, political, economic and regulatory factors.
Depending on the outcome of such analysis, the Executive Board of Rheinmetall AG will decide about further actions.
Rheinmetall Aktiengesellschaft
The Management Board
(Source: defense-aerospace.com/Rheinmetall AG)
BATTLESPACE Comment: This is an interesting move and would certainly streamline Germany’s armoured vehicle business and Europe’s in particular at a time of perceived policy differences between Rheinmetall and KMW over the UK’s MIV Programme in particular. This will also streamline the proposed new European MBT being agreed between France and Germany as Leopard will now come solely under Rheinmetall. The takeover will make Rheinmetall one of the most powerful armoured vehicle manufacturers in the world with a product range stretching from armoured 4x4s thr APCs and armoured trucks to MBTs. However, this move puts Rheinmetall as the most powerful partner in the KMW + Nexter Defense Systems N.V. alliance and could cause further moves in this area. Will the alliance now re-look at acquiring Arquus, which would balance the company and boost the French element?