KNDS considering takeover of Mercedes, VW plants, Spiegel reports
KNDS in Talks for German Automotive Plant Acquisitions
May 14 (Reuters) - Franco-German tank manufacturer KNDS is in talks with Mercedes-Benz about taking over the German carmaker's plant in Ludwigsfelde, south of Berlin, Spiegel reported on Thursday.
Key Details of the Potential Takeover
KEY DETAILS
Mercedes-Benz Ludwigsfelde Plant Negotiations
• Mercedes is in talks with KNDS about taking over the plant and some of its around 2,000 employees, Spiegel said
• KNDS could initially lease part of the plant before a full takeover and produce its military vehicles in parallel with Mercedes vans
Volkswagen Osnabrueck Plant Considerations
• KNDS is also considering a takeover of Volkswagen's plant in Osnabrueck in western Germany, according to the report
Statements from Involved Parties
• "KNDS is on a growth trajectory and is seeking suitable partner companies for the planned production ramp-up in the defence sector," a KNDS spokesman said, adding that talks with candidates were still ongoing and declining to provide any further details
• Mercedes did not immediately respond to a Reuters request for comment, while VW declined to comment on the report
• Spiegel reported Mercedes declined to comment, whilst VW stated that it was "in discussions with various market players regarding different options" for Osnabrueck following the end of current production in 2027
Other Interested Parties and Market Context
• Reuters reported at the end of April that Rafael Advanced Defense Systems had signed a letter of intent with VW to acquire the Osnabrueck plant
• The companies had declined to comment, but VW CEO Oliver Blume had told investors in a call that the group was in advanced talks with defence companies over the plant
• Volkswagen had previously said it wanted to sell or reconfigure the site
Reporting Credits
(Reporting and writing by Linda Pasquini; Additional reporting by Matthias Williams; Editing by Joe Bavier)
