Shipbuilding group Abu Dhabi MAR said it wants to expand its partnership with Germany’s ThyssenKrupp by taking a stake in its submarine unit Howaltdswerke-Deutsche Werft (HDW).
ThyssenKrupp is currently reorganising its shipbuilding activities on the back of a decline in new orders, particularly for container ships, and in October agreed with Abu Dhabi MAR on a long-term strategic cooperation to build naval ships and mega yachts.
The partnership involves forming Blohm+Voss Naval, a 50:50 joint venture that will make naval surface ships including frigates, corvettes and offshore patrol vessels.
“As part of the due diligence on Blohm+Voss, we had spoken also about a stake in HDW,” the Germany-based spokesman for Abu Dhabi MAR told Reuters.
But he said the examination of the books of Blohm+Voss was a priority.
Two sources from Thyssen and Abu Dhabi MAR told Reuters Abu Dhabi had mentioned its interest in taking a 24.9 percent shareholding in HDW, but they were currently not in any negotiations on the matter.
German daily business newspaper Handelsblatt earlier reported that Abu Dhabi MAR was interested in buying a 24.9 percent stake in HDW.
ThyssenKrupp declined comment on the report.
Brokerage Merck Finck said that for national security reasons the German government has a right of veto over foreign companies taking stakes in local companies with defence interests.
“We therefore think 24.9 percent would be the highest stake that the government would likely approve,” it said in a note.
Abu Dhabi MAR is jointly owned by Al Ain International Group and Privinvest.
(Reuters)
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