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Germany plans majority stake in troubled cruise ship builder, sources say
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Germany plans majority stake in troubled cruise ship builder, sources say
Aug 23, 2024 12:46 AM

BERLIN, Aug 22 (Reuters) - The German government plans

to take a temporary majority stake in Meyer Werft, one of the

world's top cruise ship builders, as part of measures to support

the company, sources familiar with the matter told Reuters on

Thursday.

Chancellor Olaf Scholz and members of the state government

in Lower Saxony are expected to convey this message at a meeting

with staff later Thursday, the sources said.

The company has orders in the pipeline, including from U.S.

entertainment group Disney ( DIS ), but needs to raise almost

2.8 billion euros ($3.12 billion) in order to help finance the

construction of its luxury liners.

Scholz's government, the state and the family owners of the

company have agreed in principle and set out the key points of

the arrangement, according to the sources.

The federal and state governments want to contribute 400

million euros in equity, secure bank loans with guarantees and

temporarily take over at least 80% of the shipyard, they said.

The federal government did not comment specifically on the

matter and spoke only of ongoing talks. A spokesman for the

economy ministry of Lower Saxony declined to comment.

($1 = 0.8976 euros)

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