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The acquisition of Milrem Robotics by EDGE, a United Arab Emirates state-owned conglomeration, is being investigated by one of Europe’s largest governing bodies.
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The European Commission, an executive arm of the European Union, is investigating implications of the deal after EDGE acquired a majority stake in the Estonian robotics vehicle manufacturer in February this year.
Milrem has significant market presence in the development of intelligent unmanned ground vehicles and robotic warfare solutions. In particular, it develops the THeMIS unmanned ground vehicle which has been used in Ukraine and acquired by 16 countries including Estonia, France, Germany, the Netherlands, Norway, Spain, the UK, and the US.
THeMIS is also being used as the platform for an envisioned European standard unmanned ground system or Integrated Modular Unmanned Ground System (iMUGS), a project led by Milrem and funded by the European Union.
Following EDGE’s investment, Milrem Robotics continued its current operations but also joined the UAE company as a new entity within its platforms and systems cluster. It would continue to be based in the Estonian capital of Tallinn and operate offices in Finland, Sweden, the Netherlands, and the USA, employing approximately 200 skilled personnel.
A European Commission official said the commission was informed about Milrem’s acquisition plans in February this year, however, it is currently investigating the situation of Milrem in the context of the iMUGS project.
As standard practice, projects benefiting from EU defence funding trigger an assessment by the commission when ownership changes, the official said.
EU funding eligibility of entities acquired by a third-country controlled entity would also need to be assessed, as it could be contravening the security and defence interests of the EU and its member states, the official added.
Milrem recently introduced its unmanned combat and firefighting ground vehicles at the LAAD Defence and Security 2023 exhibition in Brazil this week. The THeMIS on display there features a two-axis gyro-stabilised GUARDIAN 2.0 remote weapon station, advanced sensors and fire control system.
“Milrem Robotics’ THeMIS has already proven to be a reliable and capable robotic system in many countries and in very different climate zones, from tropical environments to the Arctic,” said Milrem Robotics chief executive officer Kuldar Väärsi.
“We are proud to present future unmanned military solutions in Latin America, and ready to deliver our systems with full support for deployment in different roles.”
