Rheinmetall Group has revealed that it is pursuing a buyback of shares held by MAN Truck & Bus in the joint venture (JV) company Rheinmetall MAN Military Vehicles (RMMV).
The proposed acquisition of MAN’s shares in RMMV will increase the shareholding of the existing Tactical Vehicles business unit to 100%.
The deal is part of Rheinmetall’s strategy of industrial consolidation and is expected to boost the company’s presence in the wheeled armoured vehicles segment.
Despite the planned share repurchase programme, Rheinmetall and MAN will continue their partnership through their JV Rheinmetall MAN Military Vehicles.
Rheinmetall is the majority shareholder in the JV with 51% interest.
Rheinmetall stated: “As co-owners of RMMV, Rheinmetall and MAN agree that the tactical wheeled vehicle business will grow more robustly under exclusive Rheinmetall management, outside the RMMV framework.”
The Tactical Vehicles business unit’s product offering includes the Boxer and Fuchs/Fox wheeled armoured vehicles and the Survivor R tactical law enforcement vehicle.
Rheinmetall is under contract to supply the Boxer vehicles to the armed forces in the UK and Australia.
The company’s Vehicle Systems division reported annual sales of €1.6bn last year. It offers military vehicles ranging from unprotected and protected trucks to heavy armoured fighting vehicles.
The completion of the share buyback is expected to occur during the second half of this year.
Meanwhile, Rheinmetall noted that its planned JV with BAE Systems in the UK is set for final implementation.
The transaction, which was announced in January, has already received approval from the UK’s Competition and Markets Authority.
To be called Rheinmetall BAE Systems Land, the JV will facilitate cooperation between the two companies in the land systems field.