The German defense giant Rheinmetall is acquiring a controlling stake in the leading Romanian automotive manufacturer Automecanica MediaÈ™.
This information is stated in a press release from Rheinmetall.
This investment strengthens the presence of the German company in the region and opens up new markets for its products. Through Rheinmetall Landsysteme GmbH, the company will own 72.5% of Automecanica MediaÈ™, which will operate in Romania under the name Rheinmetall Automecanica SRL.
The remaining shares of the company will remain in private hands. The deal still requires approval from relevant state authorities before it takes effect.
In the medium-term perspective, Rheinmetall estimates the annual sales potential of the newly acquired company to be around 300 million euros.
The company anticipates that in the current financial year, the volume of new orders will be measured in "three-digit million-euro amounts."
It is reported that the enterprise will play a key role in supporting the capabilities of Western-produced combat vehicles in Ukraine and providing logistical support for them. In the future, the facilities of Rheinmetall Automecanica SRL will service and upgrade the chassis of anti-aircraft systems belonging to the Romanian armed forces.
"Bringing Automecanica MediaÈ™ into the Rheinmetall family marks another important milestone in our strategy of strengthening the Group’s presence in Central Europe, which in turn contributes to bolstering the defensive capabilities of the EU and NATO on Europe’s eastern flank. We look forward to supporting Romania in future projects in the vehicle domain as well as with other Rheinmetall technologies. Here, the inclusion of local partners and strengthening the Romanian economy are matters of central concern to us. We want to meet the expectations of the Romania’s politicians and military in the best possible way," stated Armin Papperger, the CEO of Rheinmetall.
