Rheinmetall faces setback over frigate deal

Rheinmetall Group's defense industry division failed to secure a deal with the German government to build the next generation of warships, an outcome that the company's CEO described as a major setback. The German government announced the cancellation of the F126 project, which Rheinmetall was expected to undertake. Instead, it decided to purchase smaller ships from TKMS, ceasing Germany's plan to buy six frigates for $10 billion in favor of replacing them with smaller vessels. This development came after Rheinmetall was anticipated to win the contract, negatively impacting the future of its naval sector projects.