Deutz AG to acquire defence vehicle maker FFG for €1.6 billion

German engine manufacturer Deutz AG announced on 9 July that it will purchase Flensburger Fahrzeugbau (FFG) for a total consideration of €1.6 billion – €1 billion in cash and €600 million in newly issued shares. The deal, the largest in Deutz’s 160‑year history, will give the group a foothold in the armoured‑vehicle sector. FFG supplies wheeled and tracked military platforms such as the WiSENT recovery vehicle and the ACSV G5 combat‑support vehicle to the German Bundeswehr and NATO partners, including Ukraine.

Deutz plans to finance the acquisition through bank loans and equity, pending regulatory clearance and shareholder approval at a special meeting scheduled for 24 August 2026. Completion is expected by the end of 2026 or early 2027. The purchase will create a new Deutz Defense business unit that combines Deutz’s combustion, hybrid and field‑energy systems with FFG’s expertise in armoured platforms, supporting the company’s target of €4 billion annual revenue and a 10 % operating margin by 2030. CEO Sebastian Schulte highlighted the move as a step toward European technological sovereignty. Following the announcement, Deutz shares rose about 6 %.