Published by Global Banking & Finance Review®
Posted on June 5, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleBerlin must decide soon on acquiring a TKMS stake, impacting future defence collaborations. A decision is needed before the June board meeting.
By Tom Käckenhoff and Christoph Steitz
DUESSELDORF/FRANKFURT (Reuters) -Berlin needs to decide soon whether it will buy a stake in Thyssenkrupp's defence division TKMS, a leading labour official said, calling for clarity on the matter before a key supervisory board meeting planned for later this month.
Daniel Friedrich of Germany's biggest union IG Metall said that if Berlin becomes a TKMS shareholder, it could help the company in future tie-ups with other defence companies, many of which also have governments among their investors, at a time when the sector is getting a boost from a ramp up in military spending.
Thyssenkrupp has been in talks with Berlin about the future of TKMS, but has said government participation is not a precondition of a spin-off of the business planned for later this year.
"The question of a state entry must be clarified in the coming weeks," Friedrich, who leads the division of IG Metall that represents workers in coastal areas, told Reuters. "We need to know when and how this will happen."
Friedrich said that ideally the government would make a decision before Thyssenkrupp's supervisory board meets at the end of June to approve the planned spin-off of TKMS, which would see 49% of the unit given to Thyssenkrupp's investors as a dividend in kind.
"The state should decide now. It can also buy shares on the stock exchange later, but that would be expensive," Friedrich said. "There is also the possibility of the state acquiring shares in the new company from Thyssenkrupp."
Germany's Economy Ministry declined to comment. The Defence Ministry did not immediately respond to a request for comment.
Friedrich added that any future defence sector consolidation was not limited to Europe.
"Chances of consolidation with the Northern Europeans and Canada are greater than with Italy and France," he said.
(Reporting by Christoph Steitz and Tom Kaeckenhoff; Editing by Kirsten Donovan)
Daniel Friedrich of IG Metall emphasized that Berlin needs to clarify its position on acquiring a stake in TKMS soon, ideally before Thyssenkrupp's supervisory board meeting at the end of June.
Friedrich mentioned that if Berlin becomes a shareholder, it could facilitate future collaborations with other defence companies, enhancing TKMS's strategic position.
Thyssenkrupp has indicated that government participation is not a prerequisite for the planned spin-off of TKMS, which is expected to occur later this year.
Friedrich warned that if the state delays its decision and opts to buy shares on the stock exchange later, it could incur higher costs.
He pointed out that opportunities for consolidation in the defence sector are not limited to Europe, with greater chances seen with Northern European and Canadian firms compared to Italy and France.
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