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Rheinmetall Talking to Several Parties Over Deal for Automotive Division

Published by Global Banking & Finance Review®

Posted on July 16, 2025

2 min read

Last updated: January 22, 2026

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Rheinmetall talking to several parties over deal for automotive division - Finance news and analysis from Global Banking & Finance Review

Tags:investment corporate strategy

Quick Summary

Rheinmetall is negotiating with multiple bidders for its automotive division, including One Equity Partners, as it shifts focus to military business.

Rheinmetall Engages Multiple Bidders for Automotive Division Sale

DUESSELDORF (Reuters) -Germany's Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business, the company said on Wednesday after newspaper Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP).

"Rheinmetall has for some time received purchase enquiries from potential interested parties and is in discussions in a competitive process with several bidders," the company said.

The defence contractor wants to put the civilian sector in good hands and is examining all possibilities with the greatest care, it added.

Citing financial and sector sources, Handelsblatt reported that OEP was one of the potential parties. Rheinmetall declined to comment on that specifically.

An OEP representative was not immediately available to comment.

Rheinmetall CEO Armin Papperger reiterated in May that the Power Systems division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

The company wants to focus on its booming military business, Papperger has said.

Power Systems was the only division of the company to report a fall in business in the first quarter. Sales were down nearly 7% at 505 million euros ($585.55 million) and operating profit plunged by 70.4 percent to 9 million euros.

($1 = 0.8624 euros)

(Reporting by Matthias InverardiWriting by Madeline ChambersEditing by Miranda Murray and David Goodman)

Key Takeaways

•Rheinmetall is negotiating with several bidders for its automotive division.
•The company aims to focus on its military business.
•One Equity Partners is a potential bidder.
•Power Systems reported a decline in sales and profit.
•The sale is part of Rheinmetall's strategic shift.

Frequently Asked Questions about Rheinmetall talking to several parties over deal for automotive division

1What is Rheinmetall discussing regarding its Power Systems division?

Rheinmetall is in talks with several potential bidders for its Power Systems auto supply business, indicating a competitive bidding process.

2Why is Rheinmetall considering selling its Power Systems division?

The company has stated that the Power Systems division is no longer a core part of its business, as it aims to focus on its growing military sector.

3What financial challenges is the Power Systems division facing?

In the first quarter, the Power Systems division reported a nearly 7% decline in sales, totaling 505 million euros, and a similar drop in operating profit.

4Who is one of the potential bidders for Rheinmetall's division?

According to reports, OEP is one of the potential parties interested in acquiring Rheinmetall's Power Systems division.

5What has Rheinmetall's CEO said about the company's direction?

Rheinmetall CEO Armin Papperger has emphasized the company's intention to concentrate on its booming military business, moving away from civilian sectors.