Thyssenkrupp’s Submarine Chief Nudges Germany to Take a Stake

The chief executive of Thyssenkrupp AG’s naval vessel maker Marine Systems nudged Germany’s government to take a stake as it continues working on a separation from its parent company.

(Bloomberg) — The chief executive of Thyssenkrupp AG’s naval vessel maker Marine Systems nudged Germany’s government to take a stake as it continues working on a separation from its parent company.

“The federal government should also say what it intends to do with Marine Systems,” Thyssenkrupp’s Oliver Burkhard told German press agency DPA on Sunday. He said the government could do that by awarding contracts, creating framework conditions, and “it can also take a stake.”  

Thyssenkrupp has repeatedly said it’s working on making the unit more independent, a move that could be achieved by the sale of a majority stake to a private equity firm, a spin-off, or an initial public offering.

The backing of Germany’s federal government is deemed necessary because it would help win contracts and facilitate financing. Thyssenkrupp Marine Systems makes surface vessels, submarines and related electronics systems.

Burkhard called for a level playing field in the sector. Competitors like France’s Naval Group SA and Italy’s Fincantieri SpA are both controlled by their respective governments.

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