Bundeskartellamt approves creation of joint venture between thyssenkrupp Marine Systems GmbH and NVL B.V. & Co. KG in the context of the German Navy’s F127 defence project

The Bundeskartellamt has today cleared under merger control rules the creation of a joint venture between thyssenkrupp Marine Systems GmbH (tkMS), an indirect wholly-owned subsidiary of thyssenkrupp AG, and NVL B.V. & Co. KG (NVL), a wholly-owned subsidiary of the Lürssen Group’s Lürssen Maritime Beteiligungen GmbH & Co. KG. Through this project company, tkMS and NVL intend to jointly apply for and implement the German Navy’s Fregatte 127 defence project (F127).

The German Navy’s Fregatte 127 defence project is to replace and expand the capabilities of the existing F124-class frigate. The project involves plans to design and build five frigates, with the option of a sixth one. The Federal Office of Bundeswehr Equipment, Information Technology and In-Service Support is planning to award the contract in mid-2025.

tkMS is in charge of all of thyssenkrupp’s naval shipbuilding. NVL specialises in the building and repair of naval ships. The naval shipbuilding market is characterised by major long-term contracts awarded through tenders. The two companies have already cooperated before, including when building the F125-class frigates.

Andreas Mundt, President of the Bundeskartellamt: “In a market environment as unique as that of naval shipbuilding, creating joint ventures is a common and economically necessary practice. Due to the complexity and size of the projects, companies often have to pool their resources and expertise in order to meet the tenders’ demanding requirements. Working together as a team, which is the idea behind this concentration, also helps to ensure that such major projects can be realised at all.”

In the Bundeskartellamt’s view, the cooperation project does not raise any horizontal or vertical effects concerns. In fact, it is what makes it possible for the companies to submit an offer and was therefore cleared within the one-month deadline in the first phase of merger control.