BERLIN (Reuters) - The German government has approved a merger of German tank maker Krauss-Maffei Wegmann (KMW) with the French armoured vehicle maker Nexter, the economy ministry said on Friday.
“The government has checked the request, the permission was granted,” a spokesman for Economy Minister Sigmar Gabriel said.
State-controlled Nexter Systems and privately held Krauss-Maffei Wegmann GmbH & Co KG have been in exclusive tie-up talks for more than a year and sealed their merger in July.
The deal will combine the Leclerc and Leopard tank brands in what could be a blueprint for more European defense consolidation.
Reporting by Michael Nienaber; Editing by Joseph Nasr