Bloomberg recently reported that Switzerland’s Mediterranean Shipping Company (MSC) has begun preliminary talks with Germany’s century-old shipbuilder Meyer Werft to acquire an 80.73% stake.

The stake is currently jointly held by the German federal government and the state government of Lower Saxony, which acquired it in 2024 as part of a restructuring rescue for approximately US$460 million. If the deal is ultimately completed, it will cover Meyer Werft’s shipyard facilities in Papenburg and Rostock.

Sources said the negotiations are still at an preliminary stage and may fail or attract other bidders. German officials are said to hope to recover at least their €400 million equity investment when selling. In addition to the equity injection, the German government previously provided Meyer Werft with €2.6 billion in credit support to help stabilize the shipyard, which has been under financial pressure since the pandemic.

Meyer Werft’s financial difficulties began after the outbreak of COVID-19. Supply chain disruptions delayed the delivery of some ships, new ship orders declined, and the company was forced to temporarily scale back production, at one point completing only one large cruise ship and one small cruise ship per year.

In terms of business relations, MSC’s MSC Cruises is Meyer Werft’s largest customer. Last year, the two companies reached a preliminary agreement covering four new ships and options for two additional vessels, with a potential value of up to €10 billion. Deliveries are expected to begin in 2030 and could keep the Papenburg shipyard busy until 2035.

Meyer Werft also builds ships for Carnival (CCL) and Royal Caribbean Cruises (RCL). The company employs about 5,000 people, and its regional supply chain supports more than 20,000 additional jobs.

For investors, if the deal is reached, MSC will strengthen its control over future ship capacity. As cruise demand recovers, the potential transaction will also highlight the strategic value of Europe’s limited cruise shipbuilding capacity. At present, the discussions remain preliminary, and whether a final agreement can be reached is still uncertain.