European defense giant Rheinmetall has expressed interest in acquiring Naval Vessels Lürssen (NVL), Germany’s leading naval shipbuilder, according to Reuters. As a manufacturer of tanks and ammunition, Rheinmetall is seeking to expand into the naval shipbuilding sector. Sources indicate the company is currently in negotiations with NVL.
Bild newspaper, which first broke the news, reported that Rheinmetall’s supervisory board plans to review the acquisition in the coming weeks. However, the publication cited informed sources as saying the deal remains highly uncertain as it requires approval from the Lürssen family.
When questioned by German media at an event on Wednesday (August 27), Rheinmetall CEO Armin Papperger responded: “ We are always committed to expanding our product portfolio… We will discuss this once decisions have been finalized.” Earlier this month, Papperger had indicated that the company was in discussions with partners regarding investments in naval shipbuilding.
Currently, the German government is encouraging defense contractors to pursue collaborative opportunities while emphasizing the need to rapidly enhance defense capabilities. At present, Lürssen is collaborating with Dutch shipbuilder Damen Shipyards on a new frigate project, though the initiative has encountered difficulties due to electronic system issues. The German Ministry of Defense has stated that, in light of escalating security threats in the Baltic and North Sea regions, it will focus on rapidly expanding naval combat capabilities.
DPA (Deutsche Presse Agentur) reported that NVL has informed employees in a letter that, in response to government requests, the company “has decided to intensify merger talks.” However, the company explicitly stated: “We do not publicly comment on speculative reports and will not provide further information on this matter.”
Bild newspaper reports that the Lürssen family, NVL’s controlling shareholder, plans to divest its military shipyards in Hamburg, Wilhelmshaven, and Wolgast to focus exclusively on superyacht construction. The group spun off its yacht and military divisions into separate operations in 2021. In June this year, NVL sold its Australian naval shipbuilding business to local company Civmec.
NVL is the product of a consolidation of Germany’s warship construction sector. According to its official website, NVL is an independent private shipbuilding company formed by renowned shipyards and related companies in northern Germany. Formerly known as Lürssen Defence, it is a subsidiary of Lürssen Defence. Since its founding in the late 1870s, NVL has built and delivered over 1,000 naval and coast guard vessels, providing shipbuilding and repair services to the German Navy and fleets of over 50 countries worldwide.
NVL is the result of consolidation in Germany’s naval shipbuilding sector. According to its official website, NVL is an independent private shipbuilding enterprise comprising renowned shipyards and related companies in northern Germany, formerly known as Lürssen Defence. Since its founding in the late 1870s, NVL has delivered over 1,000 naval vessels and coast guard ships, providing shipbuilding and maintenance services for the German Navy and fleets from more than 50 countries worldwide.
NVL now comprises four facilities, featuring 13 dry docks, modern shipbuilding workshops, and specialized factories capable of constructing and maintaining naval vessels and coast guard ships ranging from 20 to 200 meters in length.
New shipbuilding business is primarily concentrated at the Peene-Werft shipyard in Wolgast and the Blohm+Voss shipyard in Hamburg. Repair, conversion, and modernization business is centered at the Norderwerft shipyard in Hamburg and the Neue Jadewerft shipyard in Wilhelmshaven. The product portfolio encompasses frigates, patrol boats, destroyers, minesweepers, and coast guard vessels.
As a privately owned shipbuilding company, NVL is Germany’s leading naval shipbuilder after Thyssenkrupp Marine Systems (TKMS), a subsidiary of Thyssenkrupp, with annual revenues reaching €1 billion.
According to information, Rheinmetall is a German comprehensive technology group founded in 1889 and headquartered in Düsseldorf, Germany. It mainly deals in armored vehicles, artillery systems and defense products and is a leading international system supplier in the defense industry.