Tuesday, December 18, 2012

Insolvent German Shipyard Snapped Up In Rare Deal


Tue., December 18, 2012
A German maker of yachts and naval vessels agreed to buy insolvent shipyard Peene in a rare deal as the shipbuilding sector in Europe's biggest economy crumbles, Reuters reported. Bremen, Germany-based Luerssen Group is paying less than 20 million euros ($26.3 million) to buy former Communist East Germany's biggest naval shipbuilder, Peene's insolvency administrator Berthold Brinkmann said on Monday. The deal to buy Peene - which makes patrol boats for the coast guard and oil spill response vessels, among other - will make Luerssen Germany's biggest maker of naval surface vessels. The acquisition will become effective on May 1, 2013. The global shipbuilding industry has been hit by a slump in demand for sea freight, an oversupply of container ships ordered before the economic crisis, and competition from rivals in China and Korea. Peene's parent company P+S Werften filed for insolvency in August, having failed to convince some of its customers to make advance payments to help the company bridge a liquidity shortfall

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