Rheinmetall agrees to buy NVL, military arm of German shipbuilder

Audio By Carbonatix

Enlarge

BERLIN (Reuters) -German defence group Rheinmetall said on Sunday it had reached an agreement with the Luerssen Group to acquire the shipyard’s military division, Naval Vessels Luerssen, in a move aimed at expanding into naval shipbuilding.

The companies have agreed not to disclose the purchase price, it said, adding they aim to complete the transaction early next year, subject to antitrust approval.

“With this significant strategic acquisition, Rheinmetall is expanding its portfolio to include naval shipbuilding and strengthening its position as a leading supplier of defence technology in Germany and Europe,” it said in a statement.

Rheinmetall, which makes tanks, grenades and infantry fighting vehicles, has for decades been active in the maritime sector. It said it plans to meet a surge in demand from naval forces and rising procurement budgets with high-performance system solutions with modern digital infrastructure.

Reuters reported last month Rheinmetall had signalled interest in taking over Naval Vessels Luerssen, or NVL, according to industry sources.

Europe’s biggest ammunition producer has benefited from higher defence spending as European countries have invested in militaries since Russia’s 2022 full-scale invasion of Ukraine.

It reported sales of 2.43 billion euros ($2.85 billion) in the three months to June, falling short of expectations, due to delays in German contract awards.

NVL is a privately owned group with four shipyards in northern Germany and international locations. With sales in the 2024 financial year of around 1 billion euros ($1.17 billion), it employs around 2,100 people worldwide.

($1 = 0.8526 euros)

(Reporting by Madeline Chambers; Editing by Lisa Shumaker)