Logo of the ammunition maker Rheinmetall, on the day of the inauguration of a new artillery plant of ammunition maker Rheinmetall, in Unterluess, Germany August 27, 2025. REUTERS
BERLIN, Sept 15 (Reuters) – Rheinmetall has reached an agreement to acquire ship builder Luerssen Group’s military division, NVL, it said late on Sunday, as the German defence group seeks to expand its European activities.
The move by Rheinmetall, Europe’s largest maker of ammunition, comes as a long-awaited consolidation in Germany’s naval sector picks up speed, with submarine and frigate maker TKMS to be spun-off from parent Thyssenkrupp next month.
It also highlights the German firm’s aim to expand in light of current geopolitical tensions in Europe, also reflected by a recent framework agreement to build a munitions ignition powder factory in Romania.
The companies agreed not to disclose the purchase price, it said, adding they aim to complete the transaction early next year, subject to antitrust approval.
“The current conflict situation reveals that military enforcement capabilities are also becoming increasingly important in the naval sector,” Rheinmetall said.
Analysts at Jefferies said that NVL was generating double-digit margins, suggesting a takeover price of 1.5 billion euros-2 billion euros ($1.76 billion-$2.35 billion) “on a debt-free basis”.
Rheinmetall, which makes tanks, grenades and infantry fighting vehicles, has for decades been active in the maritime sector. Reuters reported last month Rheinmetall had signalled interest in taking over Naval Vessels Luerssen, or NVL, according to industry sources.
Like its peers, Rheinmetall has benefited from higher defence spending as European countries have invested in defence capabilities since Russia’s 2022 full-scale invasion of Ukraine.
Rheinmetall reported sales of 2.43 billion euros 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, it employs around 2,100 people worldwide.
Reporting by Madeline Chambers and Christoph Steitz; Editing by Lisa Shumaker and Susan Fenton
