Through this joint venture, the two companies aim to bid for a multi-billion euro Bundeswehr contract to establish a military satellite network. OHB is expected to handle satellite production and the construction of ground stations, while Rheinmetall will be responsible for the networks and end-user equipment.
According to media reports, the aerospace group Airbus is also involved in the project. "Der Spiegel" reported that the three companies have agreed to tackle the project together rather than competing against each other. The initiative involves building a dedicated communication system for the armed forces, comparable to the Starlink network operated by the US company SpaceX. In January, Reuters reported, citing insiders, that the contract volume could reach up to ten billion euros. At that time, however, Airbus was still considered a potential competitor.
The new alliance between the three corporations eliminates competition for the major contract. According to the "Spiegel" report, this is likely to lead to a direct award, which could face criticism in the Bundestag's Budget Committee. A lack of competition often leads to higher prices. From the Bundeswehr's perspective, however, the report suggests the merger is advantageous for swift implementation and to avoid protracted legal disputes following an award to a single bidder.
(Reporting by Anneli Palmen, edited by Sabine Wollrab. For inquiries, please contact our editorial office at berlin.newsroom@thomsonreuters.com (for politics and economics) or frankfurt.newsroom@thomsonreuters.com (for companies and markets).)
