Rheinmetall Negotiates €12B Deal to Take Over Germany's Delayed Warship Project
Rheinmetall's Bid and the Future of the F126 Frigate Programme
Background of the F126 Frigate Programme
May 6 (Reuters) - Rheinmetall is seeking about 12 billion euros ($14 billion) from Germany to take over the country's troubled F126 frigate programme, lifting the total cost of six warships to roughly 14 billion euros, the Financial Times (FT) reported on Wednesday.
Negotiations and Key Terms
Due Diligence and Replacement of Damen
The FT, citing people familiar with the talks, said Rheinmetall's naval arm laid out terms after six months of due diligence on a deal that would see it replace Dutch shipbuilder Damen on the delayed project.
Offer Details and Delivery Timeline
The offer includes an inflation clause and a first-ship delivery in 2032, four years later than first planned, according to the FT.
Berlin's Alternative Plans
Purchase of MEKO A-200 Frigates
Berlin is also planning to buy smaller "off-the-shelf" MEKO A-200 frigates from TKMS at about 1 billion euros each, which one source described as leverage in the Rheinmetall talks, according to the FT.
Responses and Additional Information
Rheinmetall's Response
Rheinmetall did not immediately reply to a request for comment.
Exchange Rate Information
($1 = 0.8484 euros)
Article Credits
(Writing by Linda Pasquini, editing by Kirsti Knolle)
