One month after completing its spin-off and independent listing, German naval shipbuilder TKMS is reportedly seeking to acquire German Naval Yards Kiel with the aim of expanding and consolidating its naval shipbuilding operations.
German media reports that TKMS is in advanced negotiations with France’s CMN Naval Group regarding an acquisition, and the two sides are close to reaching an agreement. If the deal goes through, the two shipyards in Kiel will merge, further expanding TKMS’s product range.
The report states that the merger of TKMS and German Naval Yards Kiel is a perfect fit. TKMS’s shipyard in Kiel primarily builds submarines, and its facilities are adjacent to the Kiel Naval Shipyard in Germany, which focuses on building large, technologically advanced surface ships such as frigates and offshore patrol ships, while also providing ship maintenance and repair services and building luxury yachts.
Currently, German Naval Yards Kiel primarily builds frigates for the German Navy and provides maintenance services, leases facilities and personnel to TKMS, and collaborates on projects with Lürssen Naval Yards (NVL).
TKMS’s latest acquisition plan comes as Germany and other nations are expected to significantly increase naval expansion budgets. As a leading company in the field of submarines and frigates, TKMS is bidding on several major international contracts, including those in Canada and Poland.
With global naval ship orders expected to surge significantly, Germany’s naval shipbuilding industry is accelerating its consolidation.
Several months ago, the Lürssen Group agreed to sell its NVL division to European defense giant Rheinmetall. The acquisition is expected to be completed in early 2026, subject to approval by relevant antitrust authorities.
NVL is understood to be a product of consolidation in the German warship construction sector. As a private shipbuilding group, it was formerly known as Lürssen Defence, and began operating independently after the Lürssen Group spun off its yacht and military businesses in 2021. Similar to the Kiel Naval Shipyard in Germany, NVL primarily focuses on the construction and maintenance of surface ships.