France and Germany Consider Naval Shipyards Merger

France and Germany are considering merging their naval shipbuilding assets in what would be their biggest industrial partnership since the creation of aerospace group EADS in 2000, according to Reuters.

Although all parties are declining comment on the report for now; ThyssenKrupp, French naval shipyard DCNS and the two country’s governments are to hold talks after summer. They plan to discuss the idea of creating a Pan-European military shipbuilding alliance.

The alliance is said to be between Germany’s biggest steelmaker, ThyssenKrupp merging its military shipbuilding assets with those of DCNS. As ThyssenKrupp is reshaping its marine business, it is looking to exit the civilian shipbuilding business.

Contact has already been made by all involved, but the entire process is still in its initial stages. Meanwhile, Europe’s military shipbuilding industries are under pressure because contracts from the national navies are not enough to maintain.

France has already discussed the idea of a merger of the naval dockyards many times in the past. France has also reached out to Germany prior to this time, but the countries failed to resolve some management issues.