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​Rheinmetall Acquires Majority Stake in Romanian Company: a Strategic Move in Defense Expansion

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Illustrative photo / open source
Illustrative photo / open source

Rheinmetall takes a significant step in its global expansion strategy by acquiring a 72.5% controlling stake in Automecanica Mediaș

Rheinmetall has declared its acquisition of a 72.5% controlling stake in Automecanica Mediaș, a Romanian company specializing in the production of mine trawls, bodies, tankers, buses, and special vehicles, with undisclosed financial details. The approval of this transaction from the Romanian government is pending, although Rheinmetall has already projected an annual sales estimate of €300 million for the newly formed entity.

Automecanica Mediaș has been actively engaged in the military sector and has been collaborating with Rheinmetall since 2022, particularly in the maintenance of military equipment at a facility in Satu Mare, located 17 km from the Ukrainian border. This facility is dedicated to servicing Western-manufactured weapons for the Armed Forces of Ukraine.

Read more: ​Phase Two of Rheinmetall Ammunition Plant Starts: Lynx Vehicles, PzH 2000 Howitzers, Leopard 2 and Panther KF51 Tanks Will Be Supplied with Hungarian Ammunition
Rheinmetall takes a significant step in its global expansion strategy by acquiring a 72.5% controlling stake in Automecanica Mediaș Defense Express Rheinmetall Acquires Majority Stake in Romanian Company: a Strategic Move in Defense Expansion
Rheinmetall takes a significant step in its global expansion strategy by acquiring a 72.5% controlling stake in Automecanica Mediaș / open source

Rheinmetall emphasizes that Automecanica Mediaș will play a pivotal role in ensuring the operational readiness of Western-made combat vehicles for the Armed Forces of Ukraine and providing logistical support. The company’s scope will not be limited to military equipment, as it is set to participate in Rheinmetall’s automotive projects, including the production of HX/SX army trucks in collaboration with MAN. The new venture will also extend its services to the maintenance of the chassis for the Romanian army’s anti-aircraft systems, with a particular focus on equipment such as the Gepard SPAAG, a vehicle based on the Leopard 1 tank.

This move aligns with Rheinmetall’s broader strategy of aggressively expanding its production capacities. Notably, the German defense giant has acquired other defense companies, including the Spanish Expal ammunition manufacturer. Similar endeavors are anticipated in Romania and Hungary. Additionally, Rheinmetall has ventured into Ukraine, outlining plans for the localized production of the Fuchs armored vehicle, despite inherent risks. The company’s assertive approach signifies its commitment to diversifying and strengthening its presence across various defense-related domains.

Read more: ​Romania Bolsters Eastern Flank with €328 Million Air Defense Upgrade from Rheinmetall