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German defense company stocks plummeted sharply after reports revealed that Germany will cancel its plan to build six F126 frigates in favor of purchasing eight smaller Meko A-200 frigates. The project was expected to be led by Rheinmetall, the main contractor, with a value of up to 12.8 billion euros. However, this change raised concerns about meeting financial targets and led to an 18% drop in the company's stock value. This decline coincided with a downturn in European defense sector indices, amid ongoing uncertainty regarding the continuation and costs of various arms programs.
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