Saab AB, the Swedish maker of the Gripen fighter plane today signed a non-binding Memorandum of Understanding (MoU) for buying ThyssenKrupp AG's Swedish marine systems division, in order to expand into building submarines.
The non-binding MoU was signed by ThyssenKrupp Industrial Solutions AG, a subsidiary of ThyssenKrupp, and Saab for the sale of the Swedish shipyard ThyssenKrupp Marine Systems AB (formerly named Kockums).
Both companies have agreed that during the negotiations phase, the integrity and the operating ability of ThyssenKrupp Marine Systems must be safeguarded.
Saab said that the deal will be subject to regulatory approval and negotiations with ThyssenKrupp Marine Systems are at an early stage.
''The Memorandum of Understanding is in line with Saab's ambition to expand its activities in the naval area and meets the needs of Sweden for an industrial solution regarding design, production and maintenance of submarines and warships. An acquisition of ThyssenKrupp Marine Systems AB will enable Saab to meet this ambition.''
ThyssenKrupp Marine Systems builds submarines, naval surface vessels, yachts, special purpose ships, such as mine countermeasure vessels, patrol boats, and navy support ships.
It also provides commercial shipbuilding, repair and conversion of ships, and development and integration of components.
It has its operations in Malmö, Karlskrona and Muskö in Sweden.