Norway’s Kongsberg has entered into an agreement with the Finnish state for the purchase of 49.9% of the shares in Patria for €270m. Patria is Finland’s leading defence supplier and owns a 50% stake in the Norwegian company Nammo, the other 50% beig held by the State of Norway.

Outgoing Kongsberg CEO Walter Qvam described the move as a “proactive step to meet the ongoing consolidation in the defence industry”. Kongsberg, which is just over 50%-owned by the State of Norway, has four Business Areas: Maritime, Defence Systems, Protech Systems and Oil & Gas. The Group employs some 7,700 persons and operates in more than 25 countries. Kongsberg’s turnover in 2015 was some NOK 17bn (€1.8bn). The partnership between Kongsberg, Patria and Nammo will have total gross revenues of NOK 13.4bn in 2015.

Patria has approximately 2,800 employees and had revenues of €430m in 2015. Airbus Group held a 26.8% stake in the company, which is also an aviation services provider, until December 2014. Nammo has approximately 2,200 employees and also had revenues of €430m in 2015. Nammo develops and produces high-technology products for ammunition and rocket engines for defence and civil applications.

The companies already cooperate on air defence and missiles, and hope to extend collaboration to other areas, such as maintenance and aviation. The completion of the transaction is expected in the second quarter of 2016.