Rheinmetall sells struggling auto division to Aequita in €350 million deal
Details of the Rheinmetall-Aequita Automotive Division Sale
Background of the Sale
BERLIN, June 3 (Reuters) - Rheinmetall will sell its struggling automotive business to Munich-based investment group Aequita for roughly 350 million euros ($406 million), it said on Wednesday, one of the German firm's final steps towards focusing solely on defence.
Rheinmetall's Strategic Shift to Defence
Rheinmetall, whose business has boomed as Europe looks to build up its defences following the Ukraine war, has been courting potential buyers for its Power Systems auto parts business since last year and had classified it as a discontinued operation since December 2025.
Financial Details of the Transaction
Provisional Sale Price and Timeline
It will sell the division for a provisional price of 350 million euros, which could still change by the time the transaction is finalised, expected in the fourth quarter.
Impairment Charges and Financial Impact
Additional Impairment Charges
The divestiture will also result in additional impairment charges of around 200 million euros for Rheinmetall, after it booked a non-cash impairment charge of about 350 million euros due to the discontinued operation in December.
Statements and Market Reactions
Company Statement
"In particular, the further deterioration in the business situation in the automotive sector had an impact on the circumstances and terms of the final agreement," said the company in a statement.
Aequita's Position
Aequita, an investment firm that buys and restructures companies, was not immediately available for comment.
Additional Information
Currency Exchange Rates
($1 = 0.8621 euros)
($1 = 0.8617 euros)
Reporting Credits
(Reporting by Miranda MurrayEditing by Madeline Chambers and Ludwigi Burger)
