Germany is preparing a €2.9 billion military procurement. Which stocks will benefit?

The German parliament is preparing to approve €2.9 billion ($3.4 billion) for 11 contracts in military purchases, including drones, rifles and missiles, Bloomberg reported. Most of the orders will go to German manufacturers.

The German Defense Ministry has sent a request to the parliament to approve military purchases, according to documents seen by Bloomberg. MPs are to consider and approve them at a closed session next week, the agency reported.

According to the documents, the order from the German Defense Ministry includes 250,000 G95 assault rifles from Heckler & Koch worth €765 million. In addition, among the companies that will receive orders are German defense giant Rheinmetall, as well as automaker Daimler Truck Holding, drone startups Quantum Systems and Helsing, the agency writes.

The Defense Ministry plans to buy up to 250,000 laser-light target designators for rifles worth €490 million from Rheinmetall, particularly its Soldier Electronics division, and 1,744 military SUVs worth €379 million from Mercedes Benz, Bloomberg has learned. The department also ordered 191,000 military headsets worth €346 million from a consortium of Rheinmetall Electronics, 3M Deutschland and CeoTronics, the documents said.

The German Defense Ministry is also in the process of approving the €85 million purchase of up to 750 tactical reconnaissance drones from Munich-based startup Quantum Systems, according to Bloomberg. It also plans to award a €68 million contract to two competing consortia to develop an artificial intelligence-based platform that will monitor NATO's eastern border, including Lithuania, where Germany is reinforcing a permanent tank brigade.

The first group is Airbus Defence & Space and Quantum Systems, and the second group is German defense startups Helsing and Arx Robotics, the documents said, which also noted that a larger contract is planned at a later date.

The agency also plans to buy €445 million worth of missiles for a fleet of German F-35 fighter jets from Norwegian defense manufacturer Kongsberg Defense & Aerospace, Bloomberg reported.

Quotes of securities of the German manufacturer of military equipment Rheinmetall declined in trading on November 28 by about 0.8%, automaker Daimler Truck - by 1.9%, shares of Mercedes Benz almost unchanged in price.

Shares of European defense companies are now trading close to their lowest level since early September: they have fallen in price amid discussions of a US peace plan for Ukraine and Russia.

This article was AI-translated and verified by a human editor