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The UK Competition and Markets Authority (CMA) has approved the military vehicle joint venture between Rheinmetall and BAE Systems, a decision welcomed by the former ahead of its planned manufacturing of the British Army’s new 8x8 wheeled Mechanised Infantry Vehicle (MIV).
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Rheinmetall confirmed that the new company will sustain "at least 450 UK jobs", following the formal establishment of the joint venture in the coming weeks, as well as being able to "better serve our customers' future interest".
The joint venture will also upgrade the UK's Challenger 2 main battle tank fleet.
In January, Rheinmetall announced it will purchase a majority stake in the existing BAE Systems UK-based combat vehicles business, with BAE systems retaining 45 per cent.
The new joint venture will be headquartered at BAE Systems’ facility in Telford, England.
Last year, the UK announced it would re-join the Boxer program, which it had opted out of in 2003.
The UK said it will explore options to equip the Army with the 8x8 troop carriers to modernise its vehicle fleet and meet the Army’s MIV requirement, after playing a major role in the original design, development and testing of the Boxer nearly 15 years before.
The Ministry of Defence cited changing requirements as the reason behind the move and claiming that vehicle weight growth made the Boxer too heavy for transport by Royal Air Force C-130s.
