The German government and the state of Lower Saxony have approved a multi-billion euro rescue package for the financially troubled Meyer Werft shipyard.

The Bundestag and Lower Saxony's state parliament have agreed to jointly acquire 80% of the shipyard's shares for 400 million euros.

Additionally, both the federal and state governments will provide guarantees of around one billion euros each to secure bank loans.

The shipyard, known for its cruise ships, faces a financial crisis despite a strong order book, due to contracts signed before the pandemic that do not account for increased energy and raw material costs.

The state intervention is temporary, with no fixed exit date, and aims to stabilize the company and protect thousands of jobs.

The government also sees strategic value in the shipyard for potential military use if geopolitical tensions rise.