Shares of German arms group Rheinmetall fell sharply on Wednesday after Germany's Ministry of Defense cancelled a planned order for six F126-class frigates. According to the ministry's announcement, Germany will instead procure eight smaller warships. The decision was justified by significant delays to the project. SITA ↗
According to published information, Rheinmetall had already been preparing to take over the multi-billion-euro naval project, but the ministry halted the order. The drop in shares followed a broader reversal in the trend of the company's share price. After the start of the war in Ukraine, Rheinmetall's shares rose sharply, as the company sold large quantities of tanks and artillery equipment. However, over the last three quarters, their price has fallen by roughly half, according to available data. ekonomickydenik.cz ↗
The effects were not limited to Rheinmetall alone. Other European arms manufacturers also reported significant losses, including the Czech group CSG, whose shares fell to a historic low. One of the main triggers of the current decline was precisely the cancelled German order. Manuela Schwesig has also entered the events surrounding German shipbuilding, demanding that the Peene-Werft shipyard take part in the construction of the new frigates. e15.cz ↗
At the same time, the European arms sector is awaiting another change. KNDS, the maker of Leopard tanks and Caesar howitzers, is preparing to go public on the Frankfurt and Paris stock exchanges. Its main competitors will be Rheinmetall and the Czech company CSG, while the governments of Germany and France are set to retain their influence. seznamzpravy.cz ↗
Rheinmetall sharply weakened after cancelled German order
This summary was generated by artificial intelligence. It may contain inaccuracies. Please verify information in the original sources below.
Sources (3)
Výrobce tanků KNDS chystá vstup na burzu, vliv budou mít vlády Německa a Francie
seznamzpravy.cz
| 10:10 24.06.
Rüstungsprojekte: Schwesig: Peene-Werft auch am Bau neuer Fregatten beteiligen
Die Zeit
| 16:30 24.06.
Zbrojní gigant KNDS míří na burzu: Výrobce tanků Leopard vyzve Rheinmetall i českou CSG
ekonomickydenik.cz
| 13:50 24.06.
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