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Huge defense merger must pass German test

Staff writer ▼ | July 2, 2014
Krauss-Maffei Wegmann (KMW) and Nexter Systems (Nexter), two leading European providers of land defense systems, intend to share their future road ahead.
Krauss-Maffei Wegmann
Krauss-Maffei WegmannKrauss-Maffei Wegmann (KMW) and Nexter Systems (Nexter), two leading European providers of land defense systems, intend to share their future road ahead.


The owners of the French and German companies signed a Heads of Agreement to this effect. The alliance of the two groups under the umbrella of a joint holding company creates a Franco-German defense technology group with a current annual turnover nearing 2 billion euro, an order book of around 6.5 billion euro, and more than 6,000 employees.

Germany is to look into a proposed merger of German and French tank and armoured vehicle makers Krauss-Maffei Wegmann and Nexter to see if it threatens the country's security interests, the economy ministry said.

As well as checking to see if the deal would be compatible with security interests, Germany also said a merged company would not be able to evade export restrictions designed to control the sale of arms abroad.


 

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