Rheinmetall submits bid for GNYK shipyard as it deepens naval push
Rheinmetall's Strategic Move in Naval Defence
By Miranda Murray and Matthias Inverardi
BERLIN/DUESSELDORF, May 7 (Reuters) - German defence group Rheinmetall has entered the race to buy shipyard German Naval Yards Kiel with a non-binding bid, a move that would deepen its push into naval defence and pitting it against rival warship maker Thyssenkrupp Marine Systems (TKMS).
Details of the Bid
Rheinmetall disclosed the bid as it released its first‑quarter results on Thursday but did not disclose its value.
TKMS, which had submitted a non-binding offer for GNYK in January, was not immediately available for comment.
Background on GNYK and CMN Naval Group
GNYK is part of the family-owned CMN Naval group, a French shipbuilder active in naval and yacht construction, and employs around 400 people directly.
Expanding Naval Footprint
Rheinmetall’s Naval Ambitions
The bid underlines Rheinmetall’s efforts to expand its naval footprint after its recent acquisition of German warship maker NVL, now reported under the Naval Systems division.
CEO's Outlook and Market Expectations
CEO Armin Papperger said he expects stronger growth in the second quarter, driven by large-volume orders in the naval and vehicles business.
"With the successful acquisition of Naval Systems, we have entered a new market segment where we are also generating profitable growth," Papperger said.
Financial Performance and Future Prospects
On Monday, Rheinmetall said it missed analysts' first-quarter revenue expectations in a pre-release but confirmed it expected stronger sales growth for the year, citing an expected second-quarter upswing from production at its Spanish site and a planned delivery to the German army.
It added on Thursday its outlook was supported by the integration of the Naval Systems segment, which includes existing projects worth 5.5 billion euros ($6.5 billion).
($1 = 0.8500 euros)
(Reporting by Miranda Murray and Matthias Inverardi, Editing by Friederike Heine and Bernadette Baum)
