The Federal Cartel Office has approved the takeover of the Munich defense electronics company ESG by the defense company Hensoldt. There are no “competitive concerns, as the two companies have so far predominantly offered different products and services within the security and defense electronics sector,” said the President of the Federal Cartel Office, Andreas Mundt, on Thursday in Bonn. Hensoldt, based in Taufkirchen near Munich, builds radars and optoelectronic systems; ESG integrates different electronic components, for example from Bundeswehr fighter planes. The two companies are already working together to connect drones and other land, air and naval forces to form the Future Combat Mission System (FCMS). ESG currently belongs to the investment company Armira, while the federal government and the Italian defense company Leonardo are major shareholders in Hensoldt. Upon acquisition, ESG will be valued at an enterprise value of at least 675 million euros. Hensoldt wants to finance the purchase with a capital increase and debt.
Arms industry: Federal Cartel Office approves takeover – Economy
