By Donato Paolo Mancini 
 

Rheinmetall AG (RHM.XE) and BAE Systems PLC (BA.LN) are to create a U.K.-based joint venture for land systems, the German company said Monday.

Its headquarters will be based at BAE Systems' facility in Telford, England.

It will sustain more than 400 jobs in the country, Rheinmetall said.

Rheinmetall is to purchase a 55% stake in the existing BAE Systems U.K.-based combat vehicles business, with BAE Systems retaining 45%, Rheinmetall said.

Subject to regulatory approvals, the joint venture will be called Rheinmetall BAE Systems Land, or RBSL, once fully formed. Regulatory approvals are expected to be completed in the first half of 2019, Rheinmetall said.

Write to Donato Paolo Mancini at donatopaolo.mancini@dowjones.com; @donatopmancini

(END) Dow Jones Newswires

January 21, 2019 05:53 ET (10:53 GMT)