Rheinmetall signals interest in taking over German shipbuilder NVL, say sources

By Matthias Inverardi and Sabine Siebold

BERLIN (Reuters) -European defence giant Rheinmetall has signalled interest in taking over German shipbuilder Naval Vessels Luerssen, industry sources told Reuters on Wednesday, as the Duesseldorf-based firm looks to expand into the naval business.

According to the Bild newspaper, which first reported Rheinmetall's plans, the supervisory board intends to consider the purchase in the coming weeks.

According to Bild, the Luerssen family, who own the shipbuilder, plan to divest its military shipyards in Hamburg, Wilhelmshaven and Wolgast to focus on building megayachts.

The privately owned NVL is a leading naval ship manufacturer, alongside Thyssenkrupp's warship division TKMS, with annual sales of 1 billion euros ($1.17 billion), Bild reported.

A person familiar with the matter was cited by the newspaper as saying that any acquisition could still fall through as the Luerssen family would need to approve it.

When asked about the Bild report, Rheinmetall CEO Armin Papperger told reporters that the company was always interested in expanding its product portfolio, without giving further details.

Papperger said earlier this month that Rheinmetall, which makes tanks and ammunition, was in talks with partners about investing in the naval sector.

A NVL spokesperson said on Thursday that the company does not comment publicly on speculation and would not provide further information about the matter.

Rheinmetall is one of the biggest beneficiaries of Europe's push to upgrade its defence capabilities following Russia's invasion of Ukraine.

Separately, Dennis Goege, the European head of U.S. defence contractor Lockheed Martin, told WirtschaftsWoche that the company was in discussions to have Rheinmetall manufacture missiles including ATACMS and Hellfire types at its expanding Unterluess site in northern Germany.

The two companies said in April that they would expand their cooperation beyond a memorandum of understanding signed in 2024, with Lockheed providing missile and rocket technology, and Rheinmetall manufacturing and selling missiles in Europe.

Goege said that the final list of missiles had yet to be determined.

Rheinmetall, which this year started making fuselage parts for Lockheed's F-35 fighter jets, declined to comment on the report.

Also on Wednesday, Papperger signed a contract to build a powder factory in Romania, worth around half a billion euros, following on from Tuesday's announcement that Rheinmetall planned to produce gunpowder and 155-mm artillery shells in Bulgaria under two joint venture agreements.

($1 = 0.8542 euros)

(Additional reporting by Miranda Murray and Ludwig Burger; editing by Thomas Seythal, Kirsten Donovan and Louise Heavens)