Chapter 98: Strategic Alliances and Growing Power
Gustav Krupp was completely shocked. In his opinion, the establishment of the German Arms Company was destined to be a profitable venture. If breakthroughs could be made in light weapons, and with Oscar's influence, the German Army would inevitably purchase the weapons produced in large quantities. This, without a doubt, would mean vast profits. But now, Oscar was willing to share that profit with Krupp, a gesture that was beyond their expectations.
"Your Highness, are you suggesting that Krupp could take a stake in Deutsche Arms?" Gustav Krupp asked, his voice tinged with uncertainty.
"Yes, Mr. Krupp," Oscar replied, a smile playing on his lips. "I am willing to jointly hold shares in Deutsche Arms with Krupp."
Gustav Krupp took a deep breath, suppressing the excitement bubbling within him. After a moment, he nodded, a smile of appreciation spreading across his face. "Your Highness, this is truly an honor!"
Oscar wasn't surprised by Gustav's response. After all, it was a brilliant deal, one that guaranteed success. As long as Gustav Krupp's head was on straight, he would seize the opportunity without hesitation. This was an offer too good to refuse. With the backing of a powerful figure like Oscar, it was all but assured that Deutsche Arms would become a leading player in the industry.
"How shall we proceed, Your Highness?" Gustav Krupp asked, eager to move forward.
Oscar thought for a moment before answering. "Deutsche Industries AG will invest 100 million marks in cash, and Krupp will invest in technology. Light weapons are not Krupp's core expertise, but I believe your company has the necessary technology to develop the weapons I have designed."
Gustav Krupp, already accustomed to Oscar's genius, nodded in agreement. It was clear that Oscar wasn't just a business mogul, but also a visionary in the field of technology and weaponry. Developing the weapons for the German Army seemed like a logical extension of his brilliance.
"Your Highness, how many shares would Krupp hold in Deutsche Arms?" Gustav Krupp asked, mindful of his company's potential share in this lucrative venture.
Oscar replied with confidence, "Deutsche Arms Company and Deutsche Industries Group will hold 70% of the shares through a 100 million mark investment. Krupp's contribution will be in the form of technology, securing them 30% of the shares. Does that sound agreeable?"
Gustav Krupp's expression shifted slightly. While the offer was generous, he could see room for negotiation. As Germany's largest arms manufacturer, Krupp's financial resources were vast, and he saw an opportunity to increase Krupp's stake. "Your Highness, 30% seems a bit low. How about Krupp invests an additional 50 million marks to secure 50% of the shares?"
Oscar shook his head with a firm but friendly smile. "Mr. Krupp, 50% is not an option. I intend to maintain control over the company. After all, you wouldn't want someone else to take control of Krupp, would you?" He leaned in slightly, his tone a mix of sincerity and quiet authority.
Gustav Krupp, realizing that Oscar's position on this matter was unwavering, relented. His own test of Oscar's resolve had been answered clearly. "Very well, Your Highness. Krupp is willing to invest technology and 30 million marks for 40% of the shares. Is that acceptable?"
Oscar nodded, satisfied with the terms. "Agreed. I will retain 60% of the shares, which gives me full control. But don't worry, this arrangement will still be immensely profitable for both of us."
"Your Highness," Gustav Krupp said, raising his glass, "Here's to a prosperous partnership."
Oscar raised his glass as well. "To a successful collaboration!"
The two glasses clinked together, the sound reverberating through the air, symbolizing the start of a powerful alliance between Oscar and Krupp. The Krupp family, ever mindful of their future interests, knew that this partnership would strengthen their position in the coming years. Together, they would hold sway over the future of German arms manufacturing.
Oscar, ever strategic, looked at Gustav with a more serious expression. "Mr. Krupp, the success of Deutsche Arms in the small arms market will undoubtedly draw the ire of Mauser and Rheinmetall. They've long monopolized the field, and they will view our entry as a direct challenge. This is where I need Krupp's support."
Gustav Krupp nodded, understanding the gravity of the situation. Mauser and Rheinmetall were well-established giants, and their influence in the German military was vast. Any significant challenge to their dominance would provoke a strong reaction. However, Krupp was no stranger to competition. In fact, they had long harbored ambitions to enter the light weapons market but had been stymied by the entrenched power of Mauser and Rheinmetall.
"I understand, Your Highness," Gustav said, a knowing look in his eyes. "With your influence and Krupp's resources, we can certainly withstand any backlash. Mauser and Rheinmetall will find it difficult to oppose us if we stand united."
Oscar smiled, pleased with Gustav's understanding. "Good. We need to ensure that Deutsche Arms not only survives but thrives. Our success will be a blow to Mauser and Rheinmetall, and with Krupp's technological backing, we will dominate the light weapons market."
Gustav Krupp was already mentally preparing for the challenges ahead. He knew that aligning with Oscar meant facing opposition from some of the most powerful players in the arms industry. However, the potential rewards were too great to ignore. With this partnership, Krupp would not only expand into new markets but also help shape the future of German arms manufacturing.
As the two men finished their drinks, they both knew that the road ahead would be filled with challenges. But with their combined influence and resources, there was little doubt that Deutsche Arms would emerge as a dominant force in the industry.
"Let us forge ahead, Mr. Krupp," Oscar said, his eyes gleaming with determination. "Together, we will ensure that Germany's military strength reaches new heights."
Gustav Krupp, now fully aligned with Oscar's vision, nodded in agreement. "To victory, Your Highness."
And with that, the future of Deutsche Arms—and the balance of power in the arms industry—was secured. The Krupp family, once a powerful player in the world of heavy artillery, would now play an equally important role in shaping the future of Germany's light weapons market, and with it, the nation's military might.