Defence giant Rheinmetall is seeking about €12bn in return for taking over a delayed warship project that has become one of Germany’s most high-profile procurement debacles.
After six months of talks and due diligence, Rheinmetall’s new naval division has laid out its terms for taking over responsibility for building six F126 frigates for the country’s navy, according to two people familiar with the discussions.
The project was previously led by the Dutch shipyard Damen. But software problems and friction with German procurement officials prompted Berlin to withhold payments, forcing Damen to reconsider its role six years after winning the contract.
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