ThyssenKrupp Marine Systems inks contract for Blohm + Voss sale

Germany's ThyssenKrupp Marine Systems has signed a contract for the sale of Blohm + Voss to Abu Dhabi based Abu Dhabi MAR. The two parties had already signed a memorandum of understanding on the deal in October 2009.The sale includes the Blohm + Voss Shipyards in Hamburg and the commercial shipbuilding facilities of the former HDW Gaarden in Kiel. Abu Dhabi MAR will also get an 80 percent stake in each of Blohm + Voss Repair and Blohm + Voss Industries, both of Hamburg.

The parties also agreed on the formation of a 50:50 strategic partnership for the design and program management of naval vessels.

Abu Dhabi MAR Chairman Ahmad Darwish Al Marar hailed the agreement as "an important milestone" and said the aim was "to generate long-term growth, strengthen the international market position of the company, expand our product range and gain access to new customers."

"In Abu Dhabi MAR we have found a suitable partner for a highly promising long-term relationship. This strategic partnership represents a solid foundation for the future of the shipyard and will make it possible to attract new customers," said Dr. Olaf Berlien, member of the Executive Board of ThyssenKrupp AG.

The transaction is subject to clearance under merger control laws. The naval activities are also subject to the approval of the German government. The closing is expected to take place by the end of June 2010.