According to the report, the chancellery as well as the ministries involved have agreed not to push for state involvement at this time.

Germany’s economy and defence ministries did not immediately respond to emailed requests for comment.

Thyssenkrupp did not immediately respond to a phone call or email seeking comment.

The government will instead seek a “security agreement” to ensure that national defence and jobs are not at risk despite a spin-off, which would involve regular consultations, Handelsblatt reported.

“The agreement would also include a right of first refusal for the government in the event a strategic investor wants to buy into TKMS, though that is not expected,” Handelsblatt said.

Thyssenkrupp has said in the past that government participation was no precondition for any divestment of TKMS and that the planned spin-off would go ahead regardless.