German industrial firm ThyssenKrupp and Abu Dhabi MAR Group agreed a long-term strategic partnership for building naval ships and megayachts, ThyssenKrupp said Thursday.

The partnership involves forming Blohm+Voss Naval, a 50:50 joint venture for the design and manufacturing of naval surface ships including frigates, corvettes and offshore patrol vessels, Thyssen said in a statement.

Abu Dhabi MAR Group will take an 80 per cent stake in the megayacht business and in subsidiaries Blohm+Voss shipyards, Blohm+Voss repair, and Blohm+Voss industries.

The transaction is subject to the approval of supervisory bodies of both groups. For the naval side, the transaction is subject to disclosure requirements under the German Foreign Trade and Payments Act.

Abu Dhabi MAR Group is jointly owned by Al Ain International Group and Privinvest and recently acquired the Nobiskrug Shipyard in Rendsburg, Germany. The shipbuilding group employs 2,000 staff. – Reuters