Rheinmetall buys Loc Performance as it looks to expand in US market
Writes through
By Matthias Inverardi and Alexander Hübner
DUSSELDORF, Aug 13 (Reuters) -Rheinmetall RHMG.DE will take over U.S. military vehicle supplier Loc Performance in a $950 million deal, the German defence group said, with an eye to improving its chances of scoring orders worth billions.
"The acquisition expands the Group's business with the U.S. military, increases its industrial base in the U.S. and creates further access for its technologies in North America," it said.
Shares in Rheinmetall were up 1% on 0705 GMT on Wednesday after the deal was first announced on Tuesday evening.
Loc, with about 1,000 employees, operates plants in the states of Michigan and Ohio, where it manufactures vehicle and armour products for civilian and military customers.
It said it makes drivetrains, suspensions, track systems, rubber products, armour products and fabricated structures for vehicles.
Chief Executive Armin Papperger, reportedly the target of a Russian assassination attempt, has repeatedly made clear that he has high hopes for the U.S. market and is planning acquisitions.
Rheinmetall already has factories in the United States and also cooperates with the U.S. company Lockheed Martin LMT.N.
In particular, it expects the takeover to give it an edge in competing for two major U.S. military contracts: the XM30 infantry fighting vehicle (IFV) programme and the CTT project.
Loc Performance's current manufacturing capabilities can meet the programmes' critical production requirements, it said.
Rheinmetall is one of two participants in the prototype phase of the XM30 programme to build a new generation of tanks as the successor to the Bradley IFV, with an estimated volume of around 45 billion euros ($50 billion) for some 4,000 vehicles.
It is also participating in the Common Tactical Truck (CTT) programme for 40,000 military trucks worth around $16 billion.
($1 = 0.9090 euros)
Reporting by Matthias Inverardi in Dusseldorf, Alexander Huebner in Munich and Aatreyee Dasgupta in Bengaluru; Writing by Miranda Murray; Editing by Mohammed Safi Shamsi and David Evans
免責聲明: XM Group提供線上交易平台的登入和執行服務，允許個人查看和/或使用網站所提供的內容，但不進行任何更改或擴展其服務和訪問權限，並受以下條款與條例約束：（i）條款與條例；（ii）風險提示；（iii）完全免責聲明。網站內部所提供的所有資訊，僅限於一般資訊用途。請注意，我們所有的線上交易平台內容並不構成，也不被視為進入金融市場交易的邀約或邀請 。金融市場交易會對您的投資帶來重大風險。
所有缐上交易平台所發佈的資料，僅適用於教育/資訊類用途，不包含也不應被視爲適用於金融、投資稅或交易相關諮詢和建議，或是交易價格紀錄，或是任何金融商品或非應邀途徑的金融相關優惠的交易邀約或邀請。
本網站的所有XM和第三方所提供的内容，包括意見、新聞、研究、分析、價格其他資訊和第三方網站鏈接，皆爲‘按原狀’，並作爲一般市場評論所提供，而非投資建議。請理解和接受，所有被歸類為投資研究範圍的相關内容，並非爲了促進投資研究獨立性，而根據法律要求所編寫，而是被視爲符合營銷傳播相關法律與法規所編寫的内容。請確保您已詳讀並完全理解我們的非獨立投資研究提示和風險提示資訊，相關詳情請點擊 這裡查看。
