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Wednesday, September 27, 2023

German Government Considering Minority Stake in TKMS

Maritime Activity Reports, Inc.

September 12, 2023

© Lars Gieger / Adobe Stock

© Lars Gieger / Adobe Stock

The German government is considering taking a minority stake in Thyssenkrupp's warship division Thyssenkrupp Marine Systems (TKMS), German Defence Minister Boris Pistorius said during a visit to Kiel on Tuesday.

The consideration process would take until the end of the year, Pistorius said, according to a defense ministry spokesperson.

Thyssenkrupp is looking for a standalone future for TKMS, which builds submarines and frigates, and has mentioned a listing, partial sale, merger or joint venture as possibilities to reach its goal.

Last week, a leading worker representative told Reuters that Berlin was expected to decide within weeks whether to take a stake in TKMS, adding this was a precondition for any sale.

He said at the time that the German government did not reject in principle the idea of taking a stake in TKMS and Berlin had understood that it had to take a more active role in the sector's consolidation.

Thyssenkrupp is also still in discussions with potential suitors for a stake in TKMS, including private equity firm Carlyle, people familiar with the matter said.

Thyssenkrupp had no immediate comment.

Carlyle declined to comment.

(Reuters - Reporting by Sabine Siebold, Tom Kaeckenhoff and Christoph Steitz; Writing by Miranda Murray; Editing by Rachel More and Angus MacSwan)

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