The German federal government recently adopted a new National Defense and Security Industry Strategy, which is intended to address the wide-ranging challenges posed by the “Zeitenwende” and replaces the previous document from 2020.
The strategy also explicitly acknowledges that companies in the security and defense industry (SVI) have faced significant difficulties in accessing credit and capital markets due to the voluntary commitments made by financial institutions and issuers of financial products—such as compliance with relevant ESG criteria.
These challenges are now to be addressed through a variety of concrete measures. Regardless of the future composition of the government, this is likely to further improve the already favorable outlook for companies in the SDI sector (see the post from October 31, 2024, in the comments)—both in terms of continued growth and the realization of enterprise value through a sale.
Please feel free to contact us at any time if you’d like to discuss this topic with us in a completely non-binding manner, as we have deep insights and excellent connections in this field.
You can find the new National Defense and Security Industry Strategy here.
