Thyssenkrupp confirms plans to spin off a minority stake in its warship division, with the newly created holding set to be listed on the Frankfurt stock exchange, according to a Reuters report on March 14.

The company is in ongoing discussions with the German government regarding potential involvement in Thyssenkrupp Marine Systems (TKMS), as reported by Handelsblatt.

Thyssenkrupp expressed confidence in TKMS's position in the German maritime defense industry, stating, "The increasing demand in TKMS's core businesses and long-term geostrategic developments provide opportunities for growth, best realized through an independent structure."

Rheinmetall, Europe's largest ammunition maker, had placed a bid for TKMS, but Thyssenkrupp chose to halt the sales process in favor of the subsidiary's spin-off.

Thyssenkrupp recently announced the decision to forego selling the unit despite substantial interest, opting instead for the spin-off of TKMS valued by analysts at up to 2.3 billion euros ($2.5 billion).