German Government to Take Stake in Meyer Werft
German federal and state governments will invest 400 million euros ($445.84 million) in Meyer Werft, one of the world's top makers of cruise ships, for an 80% stake to secure the future of the company, a local government minister said on Wednesday.
The support plan also includes guarantees for 2.6 billion euros in loans for the family-owned company, said Olaf Lies, economy minister in the state of Lower Saxony.
Meyer Werft's home state agreed the support plan together with the Berlin government and other stakeholders.
The shipbuilder with a 229-year history boasts full order books but is facing a financing gap of almost 2.8 billion euros due to the delayed effects of a lull in demand during the COVID-19 pandemic.
The minister confirmed the outline of the rescue in a speech to state parliament, after sources told Reuters on Tuesday that the planned 80% stake was a temporary step before offering a return to family ownership in the coming years.
"We are convinced that Meyer Werft has a future," Lies said, hailing a recent repeat order by US entertainment giant Disney as an indicator of the company's viability.
(Reuters - Reporting by Klaus Lauer, Writing by Rachel More, Editing by Madeline Chambers)