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Media reports Germany possibly to partially nationalize giant arms manufacturer
(MENAFN) Germany is contemplating a partial nationalization of its key arms manufacturers and defense projects, according to a report by the business newspaper Handelsblatt, which cites a summary from the economy and defense ministries. This potential move is part of Berlin's broader strategy to enhance its defense sector amidst escalating tensions between Russia and NATO, following the intensification of the Ukraine conflict.
The proposed strategy would enable the German federal government to acquire stakes in companies and defense projects deemed strategically important. Currently, the German government holds a 25 percent stake in Hensoldt, a defense electronics manufacturer. The new approach could see Germany becoming more involved in key defense sectors through equity stakes.
In June, it was reported that German state lender KfW and private equity firm Carlyle were negotiating to jointly acquire a majority stake in Thyssenkrupp’s warship division. This deal, expected to be finalized next month, would mark a significant step in Germany's strategic investment in its defense industry.
Germany, which boasts the fourth-largest active military within NATO, has also announced plans to station United States cruise missiles on its soil starting in 2026. This deployment, previously restricted under the Intermediate-Range Nuclear Forces (INF) treaty—a pact the United States exited in 2019—signals a major shift in Germany’s defense posture.
The country's increased defense spending, driven by the ongoing conflict in Ukraine, has led to a surge in demand for military equipment from manufacturers like Rheinmetall and Hensoldt, boosting their order books and share prices. This reflects Germany's commitment to strengthening its defense capabilities amid a rapidly changing geopolitical landscape.
The proposed strategy would enable the German federal government to acquire stakes in companies and defense projects deemed strategically important. Currently, the German government holds a 25 percent stake in Hensoldt, a defense electronics manufacturer. The new approach could see Germany becoming more involved in key defense sectors through equity stakes.
In June, it was reported that German state lender KfW and private equity firm Carlyle were negotiating to jointly acquire a majority stake in Thyssenkrupp’s warship division. This deal, expected to be finalized next month, would mark a significant step in Germany's strategic investment in its defense industry.
Germany, which boasts the fourth-largest active military within NATO, has also announced plans to station United States cruise missiles on its soil starting in 2026. This deployment, previously restricted under the Intermediate-Range Nuclear Forces (INF) treaty—a pact the United States exited in 2019—signals a major shift in Germany’s defense posture.
The country's increased defense spending, driven by the ongoing conflict in Ukraine, has led to a surge in demand for military equipment from manufacturers like Rheinmetall and Hensoldt, boosting their order books and share prices. This reflects Germany's commitment to strengthening its defense capabilities amid a rapidly changing geopolitical landscape.
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