Rheinmetall Drops 14% as Germany Reportedly Scraps €12.8 Billion F126 Frigate Plan
Updated
Updated · CNBC · Jun 24
Rheinmetall Drops 14% as Germany Reportedly Scraps €12.8 Billion F126 Frigate Plan
1 articles · Updated · CNBC · Jun 24
Summary
Rheinmetall fell as much as 14% after the Financial Times reported Berlin plans to abandon the six-ship F126 frigate program, a contract the company had been expected to lead.
The reported overhaul would replace the multi-billion-euro project with eight smaller Meko A-200 frigates, scrapping what would have been Germany's biggest warship commission since World War II.
The selloff spread across European defense names: Hensoldt dropped 2.9%, Renk 4%, Leonardo 3.5%, Saab 2.6% and BAE Systems 1.6%, while the Stoxx 600 slipped 0.1%.
The move deepened a broader sector retreat as investors question whether promised military spending will fully materialize, even as Germany says it wants Europe's strongest conventional army by 2039.