Bloomberg reported that Abu Dhabi MAR Group is considering taking a stake of less than 25% in ThyssenKrupp AG’s HDW submarine-building unit, which supplies navies in Europe, the Middle East and other regions.

Handelsblatt newspaper reported earlier that Abu Dhabi MAR is seeking a 24.9% stake in Kiel, Germany based Howaldtswerke Deutsche Werft GmbH, known as HDW.

Ms Beatrix Brodkorb German economy ministry spokeswoman told reporters in Berlin “The government is aware of Abu Dhabi MAR’s interest in HDW.”

Ms Brodkorb, without giving a specific number, said that Abu Dhabi MAR’s planned stake is below the 25% threshold that lets the government block bids for a company by funds or companies whose majority owners are from outside the European Union.

The proposed stake would add to the Abu Dhabi shipbuilding group’s partnership with Essen based ThyssenKrupp, the German steelmaker and shipbuilder that’s selling assets and reducing staff to trim debt and return to profit.

The two companies already plan to set up a 50:50 joint venture for surface military vessels to be named Blohm + Voss Naval. Abu Dhabi MAR will also buy 80% of ThyssenKrupp’s Blohm + Voss Shipyards, Blohm + Voss Repair and Blohm + Voss Industries units.

(Sourced from Bloomberg)