Germany's ThyssenKrupp has agreed to sell its Swedish submarine shipyard to Swedish defence firm Saab for 340 million Swedish crowns ($53.51 million).
Reuters reports that deal follows ThyssenKrupp’s failure to reach a deal for a new generation of submarines with Sweden which had been looking for ways to share development costs with other potential buyers of its A-26 submarine.
"This acquisition is in line with Saab’s ambition to increase its capabilities in the naval domain. This move further strengthens Saab’s status as a comprehensive supplier of military systems," Saab said in a statement.
According to defence analysts, the sale may result in opportunities for Saab to make the submarines for the Swedish government.
“Integration and development efforts will now begin to ensure that operations reach their full capacity. It is important to achieve synergies with Saab’s current naval business,” said Gunilla Fransson, Saab Head of Business Area Security and Defence Solutions in the statement.
This process must be allowed to take its course, but at the same time we begin deliveries of development, maintenance and production work to the Swedish market.”
The transaction is subject to approval by the board and the supervisory bodies of ThyssenKrupp Group and the Swedish Competition Authority. These approvals are expected during July 2014.