Deutz Buys FFG for €1.6B: Germany Clears Deal, 2027 Close

Largest acquisition in the company's history Deutz Clears Key Hurdle in FFG Acquisition

2026-08-01 From Detlev Karg 1 min Reading Time

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Germany's Federal Cartel Office has approved the planned acquisition of military vehicle manufacturer FFG by Cologne-based engine maker Deutz, as several Media report.

FFG's Wisent 2 armoured recovery vehicle during Exercise Noble Jump 2023. Deutz plans to acquire the Flensburg-based defence specialist in its largest acquisition to date.(Photo: OR-2 Synne Nilsson, U.S. Army (Public Domain), via DVIDS/Wikimedia Commons) — FFG's Wisent 2 armoured recovery vehicle during Exercise Noble Jump 2023. Deutz plans to acquire the Flensburg-based defence specialist in its largest acquisition to date.
(Photo: OR-2 Synne Nilsson, U.S. Army (Public Domain), via DVIDS/Wikimedia Commons)

Cartel Office President Andreas Mundt described the deal as "unproblematic from a competition perspective". While Deutz would strengthen its defence business through the acquisition, "the business activities of the two companies do not overlap", he said. FFG produces, among other things, conversion modules for the Leopard 2 main battle tank, enabling variants such as armoured recovery, combat engineering, mine-clearing and bridge-laying vehicles.

Next step in Deutz's defence expansion

Deutz announced its intention to acquire FFG around three weeks ago. The companies said the merger would create "a leading European systems provider for military vehicles, propulsion systems and energy solutions". The transaction is expected to close at the end of 2026 or in early 2027, subject to shareholder approval at an extraordinary general meeting scheduled for August.

Shareholders still have to decide

The purchase price is approximately €1.6 billion and will be financed in part through newly issued Deutz shares. Under the agreement, FFG's current owning family will hold a 29.9% stake in Deutz. The transaction still requires shareholder approval. The acquisition is expected to be completed at the end of 2026 or in early 2027. Once finalised, Deutz's workforce of around 6,000 employees will increase by a further 1,100 through the addition of FFG staff.

FFG Adds a Profitable Business

FFG manufactures, maintains and modernises infantry fighting vehicles, armoured personnel carriers and other military vehicles. Its customers include the German armed forces, the NATO and 14 other NATO member states. The company generated revenue of €760 million in 2025 and is profitable, according to Deutz. Sales are expected to increase significantly, supported by an order backlog of €1.9 billion. "I am convinced that FFG is one of the most attractive and profitable defence companies available in Europe," said Deutz executive Schulte earlier this year.

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Date: 08.12.2025

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