Berlin approves Franco-German defence deal despite misgivings

Munich (dpa) - The German government has approved the long-planned merger of defence company Krauss-Maffei Wegmann (KMW) and France‘s Nexter, the Economy Ministry said Friday, paving the way for the biggest defence tie-up in recent European history.After a lengthy probe into the viability of the proposed merger, the Economics Ministry has given the green light, ministerial spokesman Adrian Toschev confirmed, adding that the Federal Cartel Office has also rubber-stamped the deal.The French government has already endorsed the deal, although explicit approval is not necessary.The proposed tie-up prompted severe criticism from opposition parties in Berlin including the Green and Die Linke parties, with critical voices arguing that German export rules for defence products may be circumvented if the Franco-German deal goes through.The KMW-Nexter tie-up will bring together 6,000 employees, as well as generating combined annual revenues of 2 billion euros (2.2 billion dollars). KMW and Nexter are known above all for their Leopard and Leclerc tanks.