Heckler-and-Koch said it would end its relationship in the wake of a German news report that Blackwater employees used its machine guns in Iraq and Afghanistan and that the two companies had a "strategic partnership."

Deutsche Welle said Tuesday that the revelations stirred criticism among some German politicians who said they were aghast at Blackwater's controversial role in Iraq and Afghanistan.

"It is scandalous and unacceptable that a German arms company cooperates with such a lawless mercenary troop," declared Green Party lawmaker Hans Christian Strobele.

Heckler-and-Koch has a U.S. subsidiary that markets its extensive line of pistols, assault rifles and 9mm submachine guns.