The German Federal Cartel Office, Bundeskartellamt today has cleared the merger of Wegmann and the French GIAT Industries.
The companies plan to introduce a new joint venture by merging its two subsidiaries Krauss-Maffei Wegmann (KMW) and Nexter Systems in constituting 50:50 stakes. The new venture will concentrate on different areas of development and production of armored wheeled and tracked vehicles and reconstruction, modernization and overhauling of armored military vehicles.
"In the Merger, it is checked whether effective competition would be significantly impeded in the markets concerned. The investigations have shown that this is not to be expected in the present case, particularly in the construction of heavy battle tanks. Security aspects are not the subject of merger control proceedings the Bundeskartellamt, but part of a foreign trade law test which is carried out by the Federal Ministry for Economic Affairs and Energy and is not yet complete,” Andreas Mundt, President of the Bundeskartellamt said in a statement.
Both KMW and Nexter build heavy armored main battle tanks. As per the investigation, the merger will have no adverse effects on the procurement of both German and French armed forces. This is a special invitation to tender market, in which even security-policy concerns in the procurement play a role.
Nexter Systems and Krauss‐Maffei Wegmann today signed an agreement to merge into a Franco‐German defence technology group with a 2 billion euro turnover, 9 billion euro order book and over 6,000 employees. Nexter and its owners view this step as decisive for the consolidation of the defence technology industry in Europe
Nexter Systems has won US$350 million contract to upgrade 200 Leclerc main battle tanks (MBTs), the French defence procurement agency (DGA) announced on Thursday. The contract also includes the modernisation of 18 Leclerc chassis-based DCL (Dépanneur de Char Leclerc) heavy recovery vehicles
Nexter and Hydrema have signed a partnership agreement on 16 december, concerning the Danish Armoured Personal Carrier replacement program (APC-R). Under an existing agreement, Hydrema will also perform the in-country logistic support of Nexters CAESAR self-propelled howitzer in the event that CAESAR is selected by DALO as part of its on-going artillery competition
Nexter Systems and Krauss-Maffei Wegmann (KMW) have closed the initial merger phase under a Dutch incorporated holding company. Two of the European manufacturers of military land systems based in France and Germany will operate jointly under the umbrella of a holding company under Dutch law with headquarters in Amsterdam, the companies said in a statement Tuesday
German armored vehicle manufacturer Krauss-Maffei Wegmann is not happy with French Nexters decision to appoint a new chief executive even as both the companies are planning for a merger. French financial daily, Les Echos Sunday reported Sunday that KMW opposes the appointment of Stephane Mayer as is new CEO replacing Philippe Burtin as the joint CEO
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