Rheinmetall, Europe’s largest ammunition manufacturer, has taken a bold step into naval shipbuilding with its planned acquisition of Naval Vessels Luerssen (NVL), a private group operating four shipyards in northern Germany and international locations. The deal, finalised with the Luerssen group, remains confidential, with the transaction value undisclosed and completion pending antitrust approval. Rheinmetall aims to finalise the acquisition early next year, positioning itself as a dominant force in Europe’s defence technology sector.
“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,” the company stated. The move underscores Rheinmetall’s ambition to diversify its capabilities, building on its decades-long presence in the maritime sector.
The acquisition comes at a time of heightened defence spending across Europe, driven by the ongoing conflict in Ukraine. Since Russia’s full-scale invasion in 2022, European nations have prioritised military modernisation, creating a surge in demand for advanced naval and land systems. Rheinmetall, known for its production of tanks, grenades, and infantry fighting vehicles, has been a key supplier to Ukraine, providing everything from armoured vehicles to air defence systems. The company’s recent announcement of plans to build four weapons manufacturing plants in Ukraine further demonstrates its commitment to supporting Ukraine’s defence efforts.
Despite reporting second-quarter sales of €2.43 billion ($2.85 billion)—slightly below expectations due to delays in German contract awards—Rheinmetall remains a powerhouse in the defence industry. Its 2024 fiscal year sales reached approximately €1 billion ($1.17 billion), reinforcing its financial stability and operational reach. With around 2,100 employees worldwide, the company is well-positioned to meet the growing demand for high-performance naval and land-based defence solutions.
The acquisition of NVL aligns with Rheinmetall’s strategy to integrate advanced digital infrastructure into its defence systems, ensuring cutting-edge capabilities for naval forces. As Europe continues to bolster its military readiness, Rheinmetall’s expansion into naval shipbuilding could reshape the continent’s defence landscape, offering a more cohesive and technologically advanced approach to maritime security.
This deal not only strengthens Rheinmetall’s market position but also signals a broader trend in European defence consolidation. As nations invest heavily in their armed forces, companies like Rheinmetall are seizing opportunities to expand their portfolios, ensuring they remain at the forefront of defence innovation. The acquisition of NVL is a strategic milestone, one that could redefine Rheinmetall’s role in the defence sector and set a precedent for future industrial collaborations.