Germany selected Thyssenkrupp Marine Systems (TKMS) to build four MEKO A-200 warships. The initial contract carries a value of approximately €6.63 billion ($7.5 billion).
This procurement replaces the scrapped F126 frigate program following major delays and cost overruns. The deal represents a victory for Thyssenkrupp and a setback for Rheinmetall.
Each vessel carries an estimated unit cost of €1.57 billion. The finance ministry included an option for four additional warships.
Total contract value could reach nearly €12 billion ($13.7 billion) if options are exercised. The program reflects a broader trend of prioritizing proven platforms to modernize military capabilities.
This project impacts the European defense industrial base and ETFs like PPA and ITA.