Germany plans majority stake in cruise ship builder, sources say

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The German government, along with the state of Lower Saxony, plans to take a temporary majority stake in Meyer Werft, a leading global cruise ship builder, to support the company amid financial challenges.

The shipbuilder, which has significant orders including from Disney, needs to raise approximately 2.8 billion euros due to delayed impacts from the pandemic.

Chancellor Olaf Scholz and local officials are expected to discuss the support measures with Meyer Werft staff.

The plan involves the federal and state governments contributing 400 million euros in equity, securing bank loans with guarantees, and temporarily taking over at least 80% of the shipyard.

Final approval will require agreement from national and local parliaments once the details are finalized.

The German Economy Minister, Robert Habeck, acknowledged ongoing efforts to find solutions, highlighting Meyer Werft’s productivity and long-standing tradition.

Both federal and state governments are working to finalize the support package.

Reuters

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