Krauss-Maffei-Wegmann to lose Saudi arms contract

German defence technology group Krauss-Maffei-Wegmann is about to lose a contract worth at least 5.0 billion euros from Saudi Arabia, the daily Handelsblatt reported on Friday.

The Saudis are losing patience over Berlin’s foot-dragging on a deal, worth $6.5 billion, to deliver 270 Leopard combat tanks, which is the subject of fierce controversy in Germany, the newspaper said.

As a result, Riyadh is considering awarding the contract to US giant General Dynamics.

Handelsblatt also reported that KMW was in “advanced” merger talks with French rival Nexter.