Saudi Arabia’s SAMI makes $1 bln bid for partnership with SA’s Denel

Saudi Arabian Military Industries (SAMI), a defense company, has made a $1 billion bid for a partnership with South Africa (SA)-based aerospace and military technology company Denel that would include the acquisition of a minority stake in a joint venture with German defence contractor Rheinmetall.

SAMI was targeting Denel’s 49 percent stake in Rheinmetall Denel Munition, a South African-based joint venture between Denel and Rheinmetall Waffe Munition GmbH.

The company said it was in discussions with all major South African firms and aimed to conclude the first deals by the end of this year.

SAMI is seeking partnerships to develop its own domestic defense industry with the goal of localizing half of its military spending by 2030.