German authorities greenlight German-French tank project

The Main Ground Combat System (MGCS) is to be developed by holding company KNDS along with German arms giant Rheinmetall and France's Thales SIX.

KNDS was formed in 2015 from a merger of German company KMW and French group Nexter.

The Bonn-based Cartel Office said on Friday that there were no serious reservations on grounds of competitiveness, as the companies involved complemented each other and were in competition with other arms makers.

MGCS is to be based in Germany and have the German and French governments as its sole customers.

It aims to replace Germany's Leopard 2 and France's Leclerc tanks with a system embedding the tank in a data network along with support drones and other systems. The new system represents a leap in tank technology.

It is to be deployed over the next decade and is expected to cost more than $100 billion.

Conflict over shares in the project led to delays and tension between Berlin and Paris, but they signed an agreement to pursue the project in January.

The companies involved continue to be in competition with each other.

Rheinmetall last year launched its own Panther KF51, and the arms giant has also started a joint project with Italy's Leonardo for the construction of tanks and special vehicles.