Rheinmetall is not participating in the current bidding process for Romania’s Mangalia shipyard, opting instead to wait for the asset’s valuation to fall to its liquidation price.
Romanian interim Defense Minister Radu Miruță stated on Friday that the German defense contractor is likely holding out for a lower entry point rather than engaging in the ongoing tender.
Shares of the company fell 13% earlier this week, leading a broad sell-off across European defense contractors.
The decision comes as Rheinmetall faces significant headwinds in its European defense portfolio.
Shares of the company fell 13% earlier this week, leading a broad sell-off across European defense contractors.
The decline followed reports that Germany intends to cancel the F126 frigate program, a major project in which Rheinmetall was expected to play a central role.
The Mangalia shipyard, a strategic asset for Romania’s naval capabilities, has been the subject of a privatization process.