September 16, 2010 / 5:00 PM / in 7 years

UPDATE 1-Greece clinches deal with Thyssen on shipyard sale

* Deal reached after tough negotiations, Greece says

* Abu Dhabi Mar to take control of Greek shipyard

(Adds background, details)

ATHENS, Sept 16 (Reuters) - Greece has clinched a deal to transfer German ThyssenKrupp’s (TKAG.DE) 75.1 percent stake in Hellenic Shipyards (HSY) to shipbuilder Abu Dhabi MAR group (ADM), the Defence Ministry said on Thursday.

“After tough and painful negotiations that on occasion reached the limit of failure, the negotiating teams today initialled the deal,” the ministry said in a statement.

The ministry did not disclose the terms of the contract.

    ThyssenKrupp fully acquired HSY, the eastern Mediterranean’s largest shipyard, in 2005. But the German steelmaker decided last year to sell the company, accusing the Greek government of breach of contract and of missing payments on a deal to build four submarines for the Greek navy.

    In March, Greece allowed Thyssen to sell HSY to ADM, but the deal subsequently hit glitches. [ID:nLDE68915M]

    The agreement will add to ADM’s existing shipyards in France, Germany and the United Arab Emirates. (Reporting by Renee Maltezou; Editing by David Holmes) ($1=.7641 Euro)

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