German arms company Rheinmetall has reached an agreement to acquire the military division of shipbuilding group Lürssen Group as part of the expansion of its European operations.
Points of attention
- Rheinmetall has entered into an agreement to acquire the military division of Lürssen Group, signaling a strategic move to expand its European shipbuilding activities.
- The acquisition is scheduled to be completed early next year, pending antitrust approval, and is expected to bolster Rheinmetall's position in the maritime sector.
- Analysts estimate the takeover price of Lürssen Group's military division to be between €1.5 billion to €2 billion 'debt-free,' highlighting the substantial value of the acquisition.
Rheinmetall to build warships
This is stated in the statement of the concern.
The companies have agreed not to disclose the purchase price, and they intend to complete the deal early next year, subject to antitrust approval.
Analysts at investment firm Jefferies said NVL (Naval Vessels Lürssen) generates double-digit profitability, suggesting a takeover price of €1.5 billion to €2 billion “debt-free.”
NVL is a privately owned group with four shipyards in northern Germany and abroad. It generated sales of around 1 billion euros in the 2024 financial year and employs around 2,100 people worldwide.
Rheinmetall, Europe's largest munitions maker that also makes tanks and infantry fighting vehicles, has been active in the maritime sector for decades and expressed interest in acquiring NVL last month, industry sources told Reuters.
German concern Rheinmetall AG plans to enter the shipbuilding business and intends to become a single center for meeting Europe's defense needs.
Rheinmetall has opened Europe's largest artillery shell manufacturing plant in Germany. In addition, the company has built a factory in Weeze to produce fuselage sections for the American F-35 fighter-bomber.
