Forging ahead: Rheinmetall spearheads ongoing consolidation in the military vehicle sector28 June 2019
High-tech Rheinmetall Group continues to pursue a strategy of industrial consolidation. Now that the competition authorities have given the project the go-ahead, a military vehicle joint venture between Rheinmetall and BAE Systems in the United Kingdom is poised for final implementation.
Moreover, a buyback of shares held by MAN Truck & Bus SE in the joint venture company Rheinmetall MAN Military Vehicles GmbH (RMMV) is set to further strengthen Rheinmetall in the wheeled armoured vehicles realm, one of the Group’s mainstays.
The planned partial buyback of stock held by MAN Truck & Bus SE in the joint venture Rheinmetall MAN Military Vehicles GmbH (RMMV) increases the share of the present Tactical Vehicles business unit to 100%. The two partners will continue to cooperate in the field of military trucks through their joint venture Rheinmetall MAN Military Vehicles, in which Rheinmetall holds a 51% stake. The joint venture recently won major orders from Australia and the German Bundeswehr.
As co-owners of RMMV, Rheinmetall and MAN agree that the tactical wheeled vehicle business will grow more robustly under exclusive Rheinmetall management, i.e. outside the RMMV framework.
The Tactical Vehicles business unit is synonymous with products such as the Boxer and Fuchs/Fox wheeled armoured vehicles and the Survivor R tactical law enforcement vehicle. Rheinmetall was recently selected to supply Her Majesty’s Armed Forces with a large number of 8x8 Boxer armoured vehicles. Last year in Australia, Rheinmetall won a roughly €2.1 billion order for the Boxer, one of the largest single contracts in the Group’s history.
The share buyback is due to take place during the second half of 2019, taking retroactive legal effect on 1 January 2019.