November 26, 2018 / 3:32 PM / a year ago

Rheinmetall says in talks to buy stake in rival Krauss-Maffei

FILE PHOTO: The logo of German defence and automotive group Rheinmetall AG is pictured at the company's headquarters in Duesseldorf, Germany March 15, 2018. REUTERS/Wolfgang Rattay

FRANKFURT (Reuters) - Rheinmetall (RHMG.DE) on Monday said it was in talks about buying a stake in rival KMW and Nexter Defense Systems N.V, sending shares in the defense company sharply higher.

“Rheinmetall AG confirms talks with Wegmann Unternehmens-Holding GmbH & Co. KG regarding the possible acquisition of Wegmann Unternehmens-Holding GmbH & Co. KG’s stake in KMW + Nexter Defense Systems N.V., and therefore an indirect acquisition of Krauss-Maffei Wegmann GmbH & Co. KG,” the company said.

Shares in Rheinmetall rose up to 6.5 percent following the announcement.

Rheinmetall will analyze and review the possibility of such transaction, the company said, adding that the transaction depends on a variety of political, economic and regulatory factors.

“Depending on the outcome of such analysis, the Executive Board of Rheinmetall AG will decide about further actions,” the company said.

Reporting by Edward Taylor, editing by Riham Alkousaa

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