German, French tank makers could merge next week

http://www.dw.com/en/german-french-tank-makers-could-merge-next-week/a-18575135

Two major German and French producers of armored vehicles are aiming to combine their operations. Both say cross-border consolidation is crucial to keep defense costs for European countries down.

German, French tank makers could merge next week
10.07.2015

The planned merger between the maker of the acclaimed German Leopard 2 tank, Krauss-Maffei Wegmann (KMW), and its French counterpart, Nexter Systems, is not the first of its kind in Europe but its expected to create a formidable armaments manufacturer in the heart of the Continent.

The unofficial date on which a contract will be signed is July 14, German media reported on Friday. After that, the deal would be subject to regulatory approval.

Support for a deal has been building in both countries' capitals for some time now. This week, French lawmakers pushed through a measure that permits the privatization of state-owned defense companies, paving the way for KMW and Nexter to join forces.

In Germany, Vice Chancellor Sigmar Gabriel has criticized the decentralized nature of Europe's arms industry, lamenting the inefficiency of having every EU member state produce its own weapons.