June 8, 2017 / 10:51 AM / 2 months ago

ThyssenKrupp joins forces with rival on fresh German warship bid-source

1 Min Read

BERLIN, June 8 (Reuters) - Luerssen, ThyssenKrupp and German Naval Yards have agreed to bid jointly for a German navy warship contract after competition authorities struck down an earlier bid, an industry source said.

The contract had originally been worth 1.5 billion euros($1.68 billion) but it is unclear how much the government will ultimately pay.

The contract for five corvettes, which had been due to be awarded without tender to a consortium of ThyssenKrupp and Luerssen, was struck down by the German cartel office after German Naval Yards complained.

Under the deal, which must still be approved by the cartel office, German Naval Yards would win work worth 15 percent of total revenues from the contract. The German parliament's budget committee will decide on the contract on June 21, the source said.

The German Defence Ministry had previously argued that the quickest way to meet the navy's urgent military needs in the Baltic and Mediterranean seas would be to award the contract without tender.

$1 = 0.8902 euros Reporting By Sabine Siebold, writing by Thomas Escritt; Editing by Michelle Martin

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