PARIS — Rheinmetall, Europe’s biggest supplier of ammunition and tank guns, plans to move into the business of warships with the purchase of the military division of German shipbuilder Lürssen Group.
The companies agreed on the key terms of an acquisition of Naval Vessels Lürssen, and aim to complete the deal in early 2026, subject to antitrust approval, Rheinmetall said in a statement late Sunday evening.
The parties didn’t disclose the purchase price.
While mainly known for land systems and ground-based weapons, Rheinmetall has been expanding in areas including drones, missiles well as parts for the F-35, as the company seeks to capitalize on increased defense spending in Europe.
NVL adds around €1 billion (US$1.2 billion) in annual sales in the naval domain, compared to Rheinmetall’s 2024 revenue of €9.75 billion.
“With this significant strategic acquisition, Rheinmetall is expanding its portfolio to include naval shipbuilding and strengthening its position as a leading supplier of defense technology in Germany and Europe,” the company said.
NVL operates four shipyards in northern Germany and employs around 2,100 people, and Rheinmetall said the yard is considered a pioneer in autonomous maritime surface systems.
The Lürssen unit in August announced a joint venture with Kraken Technology to scale up production of the British company’s unmanned surface vessels.
Rheinmetall already supplies equipment for naval forces, including simulation and protection systems. The company said it plans to meet the “massive increase” in demand from naval forces and rising defense-procurement budgets with “high-performance system solutions,” from vessels to electronics, sensors and effectors.
The acquisition is expected to bring synergy effects with Rheinmetall’s vehicle systems division resulting from shared materials and technology, while NVL’s shipyards add equipment capabilities for equipment capabilities and capacity reserves in automotive, according to the company.
“This enables Rheinmetall to minimize excessive infrastructure investments or extensive conversions of other production lines,” the company said.
NVL built the F125 Baden-Würtemberg class frigates in use with the Germany Navy, and is a subcontractor for the new F126 frigates, with delivery of the first vessel planned for 2028. The company has also built corvettes for the German and Bulgarian navies, with two oilers and three intelligence-gathering vessels under construction for the German forces.
Lürssen Group’s revenue was about 50-50 split between yachts and defense, CEO Peter Lürssen told Spear’s in a 2021 interview, with the yard building vessels such as the 180-meter super yacht Azzam and the 123-meter yacht Dilbar.
Rudy Ruitenberg is a Europe correspondent for Defense News. He started his career at Bloomberg News and has experience reporting on technology, commodity markets and politics.
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