Rheinmetall shares fell 20% after reports of Germany's decision to… (акция · фрегат · строительство)
Rheinmetall shares fell 20% after reports of Germany's decision to cancel the frigate program. Shares of the German weapons manufacturer dropped 20% following a Der Spiegel report that Germany has decided to scrap its plans to build frigates.
Consensus
- Rheinmetall's stock dropped significantly, with losses reaching up to 20%.
- Germany decided to cancel the F126 frigate project.
- The decision was reportedly made by the German Ministry of Defense.
- The F126 frigates were planned to be the largest German military ships since WWII.
- The project was estimated to cost €12.8 billion.
- The decision was made in favor of smaller MEKO A-200 frigates from TKMS.
- Other German defense companies also saw their stocks decline.
Points of divergence
- The drop in stock price was due to the cancellation of a multi-billion dollar contract for the construction of six F126 frigates. — vesti
- Rheinmetall had been considered a key contender for the F126 contract, especially after Dutch company Damen Schelde Naval Shipbuilding exited the project. — vesti
- Rheinmetall's stock had already declined by about 50% since October of the previous year. — vesti
- Rheinmetall is expanding its production capacity for naval drones at Blohm+Voss shipyard in Hamburg. — vesti
- The decision to cancel the F126 project was made by German Defense Minister Boris Pistorius. — kommersant
- The F126 frigates were to be 166 meters long with a displacement of 10,000 tons. — kommersant
- TKMS's stock rose by 14% as a result of the decision. — kommersant
- Other defense companies like RENK, Hensoldt, Leonardo, and Saab also saw their stocks decline. — kommersant
Coverage (2 sources)
- Rheinmetall shares plummet amid Bundeswehr's rejection of major contract — Вести
- Rheinmetall shares drop 20% after reports of Germany's rejection of the frigate — Коммерсантъ