Algeria and Germany to conclude 7.2 billion Euro-worth arms deal

German defense group Rheinmetall is set to sign a huge contract with Algeria aimed at manufacturing armored vehicles in the country. Media reports said the deal had been approved by the German government.

Rheinmetall and project developer Ferrostaal industrial group were due to sign a deal with Algeria for nearly 1,000 armored personnel carriers and a factory, German business daily Handelsblatt reported Wednesday.

The arms deal was for 980 Fuchs 2 vehicles worth a total of 2.7 billion euros ($3.7 billion), Handelsblatt said, and would be signed in the coming weeks.

The contract is part of a bundle of arms deals between Algeria and Germany, valued at 10 billion euros, and will also include the delivery of two frigates by industrial conglomerate ThyssenKrupp and the production of military vehicles by Daimler.