Investing.com -- Thyssenkrupp (ETR: TKAG ), the German multinational conglomerate, has announced plans to proceed with the spin-off of a minority stake in its warship division. The new holding will be listed on the Frankfurt stock exchange, according to the company’s statement on Friday, as reported by Reuters.

The company also confirmed that discussions with the German government regarding potential involvement in its marine division, Thyssenkrupp Marine Systems (TKMS), are still ongoing.

These updates were given in response to a Handelsblatt report, which claimed, citing sources close to the matter, that Thyssenkrupp had called off the sale of TKMS to Rheinmetall (ETR: RHMG ), the largest ammunition manufacturer in Europe.

Thyssenkrupp, in an email statement, highlighted the position of TKMS as one of Germany’s biggest system providers in the maritime defense industry. The company emphasized the promising prospects of TKMS in the relevant markets, along with the increasing demand forecast for the coming years in TKMS’s core businesses, and the long-term geostrategic developments. Thyssenkrupp expressed its intention to capitalize on these growth opportunities through an independent set-up.

Last month, Rheinmetall CEO Armin Papperger disclosed that a non-binding offer for TKMS was submitted by Rheinmetall at the end of 2024. He also revealed that the sales process was halted as Thyssenkrupp favored a spin-off of the subsidiary.

Thyssenkrupp had stated last month that it was no longer seeking a sale of the unit, despite substantial interest from strategic players. The company affirmed that the primary goal was the spin-off of TKMS, which analysts have estimated could be worth up to 2.3 billion euros ($2.5 billion).

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