The company said it hoped that the two companies would be better able to develop as separate entities.

Kongsberg Maritime, which employs about 8,000 people, supplies navigation, propulsion and automation systems for civilian and military ships.

"We have concluded that continued growth and development will be even better ensured if Kongsberg Maritime leads its own life as a separate, publicly listed company," Eivind Reiten, chair of the board of Kongsberg Gruppen, told a press conference.

Kongsberg Gruppen would retain the defence, aerospace, and ocean exploration business areas.

In practical terms, the split would mean that shareholders in Kongsberg Gruppen would get a share in Kongsberg Maritime for each of their shares.

The announcement came as the group reported quarterly results that fell short of expectations.

For the third quarter, the group reported an EBITDA (Earnings before interest, taxes, depreciation and amortization) of 2.45 billion kroner ($244 million), up nine percent compared to a year earlier, with revenue of 13.3 billion kroner.

Shares in Kongsberg Gruppen fell over 13 percent in the early hours of trading on the Oslo stock exchange.

The split, which needs to be approved by shareholders at an extraordinary meeting in January, would take effect in April, 2026.

It has already received the blessing of the Norwegian state, which holds a 50-percent stake in the defence company.

"This is a good move to support further growth and value creation in what will become two important Norwegian technology companies," Minister of Trade and Industry Cecilie Myrseth said in a statement.

German conglomerate Thyssenkrupp also recently spun off its naval division, specialised in submarine construction.

phy/ef/jll/lth

KONGSBERG GRUPPEN

THYSSENKRUPP