Germany cancels the F126 frigate program and will procure eight smaller MEKO A-200 frigates from ThyssenKrupp Marine Systems, officials tell industry and lawmakers.The Financial Times reports the decision prompts a sharp selloff in defense stocks, with Rheinmetall tumbling as much as 13%, Hensoldt down 5% and Renk near 4%, and losses spreading to Saab, Leonardo and BAE Systems across Europe.The F126 program suffered cost overruns, software failures and procurement problems with
Damen Naval that require an expected €2B write-down;
Rheinmetall, which paid €1.5B for Naval Yards Lürssen, will not proceed and the hull at Wolgast remains in doubt.