Swedish defence firm Saab has confirmed that it is in the final stages of negotiations to acquire Swedish shipyard ThyssenKrupp Marine Systems, formerly known as Kockums.
Saab said in a statement: “The discussions are at a final stage but still on-going.”
The company has entered into a non-binding memorandum of understanding (MoU) with ThyssenKrupp Industrial Solutions in April, but no final agreement has been signed yet on the proposed acquisition.
Saab is expected to finalise a deal soon at well below SEK1bn ($148.4m), reported Reuters citing Swedish news agency Dagens Industri.
At the time of signing the MoU, Saab said that the proposed deal forms part of the company’s strategy to expand its activities in the naval segment.
Upon completion, the acquisition would allow the company to cater to Sweden’s requirements for industrial solutions related to the design, production and maintenance of submarines and warships.
It is expected to allow the company to build underwater vessels, in addition to providing ship-control management and electronic warfare systems for submarines, according to a Bloomberg report.
ThyssenKrupp Marine Systems, a part of the Industrial Solutions business of the ThyssenKrupp, provides systems for non-nuclear submarines and high-end naval vessels.
The unit operates facilities in Malmö, Karlskrona and Muskö in Sweden, and has naval shipbuilding activities in Kiel, Hamburg and Emden.
Image: Kockums ship yard in Malmö, Sweden. Photo: courtesy of Fred J.