New Ownership on the Horizon for FFG: Flensburg’s Defense Company Transition

The Flensburger Fahrzeugbau Gesellschaft (FFG) is set to undergo a significant ownership change. According to the Cologne-based engine manufacturer Deutz, there is an agreement for the complete acquisition of the Flensburg defense firm, aimed at bolstering Deutz’s relatively small defense sector.

“This merger sets the stage for the next generation,” remarks Norbert Erichsen, spokesman for FFG’s shareholder group. “At the same time, a German defense industry alliance will emerge, combining the strengths of both companies and driving their joint development forward in the long term.”

Minister Madsen: A Positive Sign

Economic Minister Claus Ruhe Madsen (CDU) also characterized the planned takeover as “a tendentially positive sign.” The strategic merger opens up additional international markets, broadens product and service portfolios, and creates new opportunities.

The firm informed the state government about this step, assuring that FFG remains FFG. Projects will continue seamlessly. Economic Minister Claus Ruhe Madsen (CDU)

The economic minister does not share concerns regarding job losses. “In a market economy, it is a positive sign when Deutz shows interest in companies like FFG.”

Current Owners Retain Stakes

The transaction price stands at approximately 1.6 billion euros, partially payable in new Deutz shares. The existing owner family of FFG is expected to retain 29.9% of the shares. This agreement still needs approval from Deutz’s shareholders’ meeting and the green light from antitrust authorities.

Currently, FFG employs about 1,100 staff, manufacturing, maintaining, and modernizing armored personnel carriers and other military vehicles, with the Bundeswehr as a key client. Deutz primarily produces internal combustion engines for heavy machinery, employing around 6,000 people.