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Navy vessel Photo: AP
Navy vessel Photo: AP
 
 

Navy to buy ships from Arab-owned company?

Deal between Israel, German shipbuilders hits snag when UAE-owned firm buys majority of shares

Arie Egozi
Published: 06.24.10, 15:02 / Israel News

The Navy may purchase new ships from a shipbuilding company mostly belonging to Arab investors, Ynet learned Thursday.

 

The IDF has been shopping for new vessels that will allow its Navy to expand and improve its capabilities. At first Lockheed Martin seemed an option, but the American company was quickly rejected because of its prices.

 

The plan then became, therefore, to buy two large ships from Germany's biggest shipbuilder, Blohm & Voss, which has developed them specifically for the Navy's needs.

 

Each vessel costs approximately $300 million before the many additions Israel plans to place on board, including electronic warfare devices, radars, and weapons systems.

 

But the plan hit a snag when the United Arab Emirate-owned Mar group announced it would purchase the majority of shares in the German company. The two firms are currently discussing the final details of the deal.

 

The defense establishment has thus begun to look into the potential outcomes of purchasing ships from an Arab-owned company.

 

There has been no official comment on the subject, but sources affiliated with the deal say there has been a scurry to properly assess the situation, and to determine whether it will be possible to keep confidential details about the ships under wraps.

 

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