BERLIN, July 2 A merger between French arms
maker Nexter and Germany's Krauss-Maffei Wegmann (KMW) would
help consolidate Europe's defence industry, but must be checked
to see if it threatens Germany's security interests, the economy
ministry said on Wednesday.
The German ministry added in a statement that a merger would
not affect how its arms exports rules impact on the KMW, as any
transfer of German technology, or component parts, would still
be subject to the controls.
A merger between the firms would create Europe's largest
producer of ground armaments such as tanks, as both struggle to
cope with military budget cuts and reduced defence spending.
(Reporting by Gernot Heller; Writing by Alexandra Hudson;
Editing by Stephen Brown)