Deutz Jumps on Power Generation, Defense Expansion Plans

Deutz AG surged after the German maker of diesel and gas engines said it plans to offer alternative energy systems for hospitals and data centers at risk of power cuts, as well as a potential expansion to supply the defense sector.

The shares surged as much as 28%, the biggest gain since 2012, valuing the former manufacturer of tractors at €738 million ($792 million).

The company is looking into delivering motors for wheeled tanks or armored personnel carriers, German newspaper Welt am Sonntag reported, and its generator business could be tailored to supply the army. Defense stocks such as tank-maker ...