Rheinmetall buys majority stake in BAE Systems UK combat vehicles business

The establishment of the new joint venture between BAE Systems and Rheinmetall is subject to regulatory approvals, which are expected to be completed before June. Once these have been granted, the business will be known as Rheinmetall BAE Systems Land (RBSL). Rheinmetall will own a 55 per cent stake in the venture, with BAE Systems retaining the remaining 45 per cent. Financial details have not been disclosed.

RBSL will be headquartered at BAE Systems facility in Telford and will manage and grow the existing combat vehicle support business, as well as design and manufacture of military vehicles. Rheinmetall’s range of vehicles include protective vehicle systems, multi-role vehicles, command vehicles and transports, along with reconnaissance systems and field laboratories. BAE Systems, meanwhile, brings products such as the reconfigurable wheeled fighting vehicle Boxer; Trojan, a Challenger 2 tank chassis with an excavator arm in place of the turret; Terrier, an armoured digger; Warrior, a tracked armoured vehicle; military bridging vehicles and the AS90 self-propelled artillery system. According to a BAE Systems statement, it will also “have the potential to create hundreds of additional UK jobs, both in Telford and the wider supply chain” and will participate in and contribute to global military vehicle pursuits and contracts