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Saab completes Kockums shipyard deal

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Saab completes Kockums shipyard deal
The presentation of a submarine construction at the Malmö office of Kockums in 2013. Erland Vinberg / TT
23:12 CEST+02:00
Swedish defence giant Saab has completed its acquisition of the German owned submarine shipyard for 340 million kronor ($50.4 million) the company announced in a statement late Sunday night.

Following months of complex and often tetchy negotiations the deal has finally been inked. Saab announced in April that it signed a non-binding Memorandum of Understanding to swallow up the shipyard from ThyssenKrupp Marine Systems AB (TKMS AB, formerly Kockums). 

The amount falls a long way shy of the billion-kronor deal previously anticipated. Swedish newspaper Dagens Industri speculated on Friday that it would cost in the region of 500 million kronor.

In a statement on the Saab defence website the company said that existing funds would be used to carry out the acquisition. It stated that TKMS AB would be integrated into Saab's business area of security and defence operations.

"This acquisition marks the start of a new era in Kockum’s notable history. The knowledge that the employees possess for developing and producing submarines is unique and strengthens all of Saab," Saab’s President and CEO Håkan Buskhe said in a press release.

The deal was also welcomed by Swedish defence minister Karin Enström who said the announcement will help modernize the existing submarine fleet.

It is subject to approval by the board and the supervisory bodies of ThyssenKrupp Group and the Swedish Competition Authority.

Both are expected during July 2014 after which the takeover will be complete.

The Local/pr

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