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Rheinmetall to buy warship maker NVL in latest expansion push
Published by Global Banking and Finance Review
Posted on September 14, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on September 14, 2025
2 min readLast updated: January 21, 2026
Rheinmetall acquires NVL to boost its naval capabilities amid rising European military spending, valuing NVL at 1.35 billion euros.
By Madeline Chambers and Christoph Steitz
BERLIN/FRANKFURT (Reuters) - Rheinmetall has agreed to buy Luerssen Group's warship division, NVL, as the German defence group seeks to expand in Europe and tap increased military spending across the continent.
The move announced on Sunday by Rheinmetall, Europe's biggest ammunition maker, comes as a long-awaited consolidation in Germany's naval sector picks up speed, with submarine and frigate maker TKMS to be spun off from parent Thyssenkrupp next month.
It also highlights Rheinmetall's ambitions to grow in Europe, and follows its recent framework agreement to build a munitions ignition powder factory in Romania.
The companies agreed not to disclose the purchase price for NVL, Rheinmetall said, adding they aimed to complete the deal early next year, subject to antitrust approval.
Rheinmetall CEO Armin Papperger, in a call with investors, said the deal valued NVL at about 4.5 times its mid-term core profit target of 300 million euros, indicating a price of around 1.35 billion euros ($1.59 billion).
Papperger said the foray into the naval sector was triggered by Russian aggression. Moscow's full-scale invasion of Ukraine has led countries across Europe to ramp up defence spending.
Germany alone is expected to spend around 31 billion euros on naval vessels by 2035, Rheinmetall said.
Rheinmetall shares were 1.6% higher at 1152 GMT, with Jefferies saying the deal was done at an "affordable price given strong mid to long-term potential".
Rheinmetall, which makes tanks, grenades and infantry fighting vehicles, has for decades been active in the maritime sector. Reuters reported last month that it had signalled an interest in taking over NVL, according to industry sources.
NVL, which employs around 2,100 staff globally, is a privately owned group, with four shipyards in northern Germany and international locations.
It made sales of around 1 billion euros in 2024 and is expected to reach an operating margin of 10% in 2025, according to presentation slides, which Rheinmetall said surpassed rivals including TKMS, Fincantieri and Naval Group.
($1 = 0.8507 euros)
(Reporting by Madeline Chambers and Christoph Steitz. Editing by Susan Fenton and Mark Potter)
An acquisition is a corporate action in which one company purchases most or all of another company's shares to gain control of that company.
A warship is a naval ship that is equipped for combat, typically used by a navy to engage in warfare at sea.
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