Controlled ‘Europeanisation’? The KMW–Nexter merger and the Germany’s new strategy for the arms industry. OSW COMMENTARY NUMBER 180/26.08.2015

On 29 July a deal was signed in Paris concerning a merger between Krauss-Maffei Wegmann (KMW), Germany’s largest manufacturer of tanks, infantry fighting vehicles and artillery systems, and its French counterpart Nexter. The new holding formed as a result of the merger will be Europe’s largest producer of arms systems for land forces, comparable to the Airbus Group in the aerospace industry. While work on finalising the merger was underway, the German government was developing a new strategy for Germany’s arms industry, which was published on 9 June 2015. The strategy’s provisions show that German politicians, despite holding negative opinions on previous mergers between German arms companies and foreign businesses, have concluded that consolidation at the European level is nonetheless the only way to go. However, the strategy also states that the German government should exercise more influence than previously on the terms and conditions of any such consolidation. To this end, it identified key national technologies which will be supported and protected through various instruments, including also the conclusion of intergovernmental agreements on strategic defence co-operation. Such agreements may regulate questions such as the ownership structures of the new companies, the locations for developing technologies and for manufacturing products, subcontractors and exports of jointly developed arms and military equipment. In relation to the KMW–Nexter merger, such a deal between France and Germany is expected to be signed this autumn.

(Table T1) Strontium isotopic composition and ages of limestone samples from ODP Hole 180-1118A

Limestone from Unit VI (857.1-859.15 meters below seafloor) collected at Site 1118 contains a planktonic foraminiferal fauna indicating a latest Miocene to early Pliocene age. Globorotalia tumida is recorded in Sample 180-1118A-68R-4, 46-48 cm, indicating an early Pliocene (N18) age at this level (J. Resig, pers. comm., 2000). Based on their known range in the western Papuan Basin, the presence of (rare) Lepidocyclina and common Amphistegina in some samples suggests that abundant shallow-water bioclastic debris present in these limestones may be reworked from older, possibly middle or early late Miocene sediments. Four samples were selected for whole-rock strontium isotopic analysis to further investigate this possibility. A petrographic examination of samples analyzed was also conducted.

(Table T1) Porosity and permeability of samples from ODP Leg 180 sites

Woodlark Basin, an area of continental extension, is an ideal location to study the evolution of permeability and the development of overpressures within an active rift basin. In this investigation, we measured sediment permeabilities of cores from Woodlark Basin and used numerical modeling to determine if pore fluid overpressures are likely at the base of the rift basin. Constant-rate flow tests were conducted on cores from Site 1108, located in the rift basin, and Sites 1115 and 1118, located on the northern margin of the basin. Results of the laboratory tests indicated permeabilities that range from 1.5 x 10**-18 to 1 x 10**-16 m**2. Results of the numerical modeling of Site 1108 suggest that overpressures due to sedimentation are unlikely.