BERLIN, Feb 23 (Reuters) - The chief executive of German warship builder TKMS has called for consolidation within the defence industry in a speech published on Monday ahead of the company's annual
TKMS CEO urges faster consolidation across Germany and Europe’s defense
Call for Defense Industry Consolidation
BERLIN, Feb 23 (Reuters) - The chief executive of German warship builder TKMS has called for consolidation within the defence industry in a speech published on Monday ahead of the company's annual general meeting.
Standardisation and Speed
"If defence capabilities are to be established more quickly, standardisation, industrial consolidation and speed are required," CEO Oliver Burkhard said in a transcript of the speech due to be held during the AGM on Feb. 27.
Money vs. Execution
"Money alone does not build ships," he said, adding that the decisive factor was how quickly industry and clients could act together.
TKMS Role in European M&A
Burkhard said TKMS, which was spun off from Thyssenkrupp and listed on the stock exchange last year, was prepared to play an active role in consolidation in Germany and Europe.
M&A Activity Rebounds
After years of stagnation, mergers and acquisitions activity in the industry is rising.
Recent Bids and Deals
TKMS, in which Thyssenkrupp still holds a majority stake, has made a non-binding takeover bid for its smaller competitor German Naval Yards Kiel, while arms maker Rheinmetall has acquired the defence division of Luerssen shipyard.
Reporting Credits
(Reporting by Tom Kaeckenhoff, writing by Linda Pasquini, editing by Friederike Heine)
