Qatar blocked Volkswagen’s deal to produce components for Iron Dome

Qatari investors have vetoed an agreement between the Volkswagen automaker and the Israeli defense company Rafael, Mako reports, citing the German newspaper Bild.

The deal included the production of components for the Iron Dome missile defense system at the Volkswagen plant in Osnabrück. At the end of April, the parties signed a memorandum of understanding, but Qatari shareholders opposed cooperation with the Israeli company amid tensions between Israel and Qatar.

The Qatar State Investment Fund owns 10.4% of Volkswagen shares and controls about 17% of the voting power. Its representatives are also members of the concern’s supervisory board.

Rejection of the deal threatens the future of the Osnabrück plant and hundreds of jobs. The company is experiencing financial difficulties, and cooperation with Rafael was considered as one of the options for loading it.

According to Mako, the influence of Qatari capital became an obstacle to another deal: the German shipping company Hapag-Lloyd abandoned plans to acquire control of the Israeli company CIM for about $4.2 billion.