Rheinmetall “in advanced talks” to take over Mangalia shipyard in Romania

German group Rheinmetall said, in a response to Ziarul Financiar, that it is in “advanced talks” with the Romanian authorities for taking over Mangalia shipyard currently under bankruptcy procedures.

The deal is tied to a EUR 920 million award by Romania to Rheinmetall for four military ships, under the condition of being built at Mangalia shipyard, financed under the EU-backed SAFE scheme.

The Senate approved the SAFE contracts on July 30, after the Chamber of Deputies backed it on the day before. The step may speed up the takeover negotiations. However, the EUR 920 million contract would generate only some 15% of the shipyard’s capacity, according to the German group’s officials.

The shipyard’s creditors, among whom the largest is Dutch group Damen, require EUR 184 million for the assets under a going concern valuation. However, the shipyard has had no employees or activity since mid-July.

(Photo source: Tobias Arhelger/Dreamstime.com)