Germany still in discussions with Thyssenkrupp on naval spin-off

"TKMS has the relevant technologies and is of particular importance to us, to our navy. That is why we are monitoring the situation and looking closely at what is happening there."

In an emailed statement, another defence ministry spokesperson said talks were ongoing in light of Berlin's interests, but declined to give details, citing confidentiality.

A spokesperson for Thyssenkrupp said the company was in constructive discussions with the government over TKMS, which makes frigates, submarines and sensor technology, "but we do not wish to pre-empt the outcome of these discussions".