Paul Tudor Jones sees potential market rally after late October
Investing.com -- German defence group Rheinmetall said on Sunday it has struck a deal with the Luerssen Group to buy its military shipbuilding arm, Naval Vessels Luerssen (NVL), expanding into naval construction.
The companies did not disclose the price of the transaction, which is expected to close early next year pending antitrust clearance.
"With this significant strategic acquisition, Rheinmetall is expanding its portfolio to include naval shipbuilding and strengthening its position as a leading supplier of defence technology in Germany and Europe," the company said in a statement.
Rheinmetall, known for producing tanks, grenades and infantry fighting vehicles, has long been active in the maritime sector. It said the move will help it respond to growing demand from naval forces and higher defence budgets with modern, digitally equipped systems.
The company, Europe’s largest ammunition producer, has been a major beneficiary of rising military spending since Russia’s 2022 full-scale invasion of Ukraine.
It generated about €1 billion in revenue in 2024 and employs roughly 2,100 people, with four shipyards in northern Germany as its core sites. Over its 150-year history, the company has delivered more than 1,000 vessels to more than 50 navies and coast guards worldwide, and continues to provide maintenance and repair services.
Rheinmetall said it expects the acquisition to create synergies with its Vehicle Systems unit through “shared material and technology expertise,” adding that NVL’s large-scale infrastructure could also serve as additional capacity reserves.
"We know from recent discussions with the company that NVL generates double-digit margins, with an ambition to eventually reach up to mid-teens including synergies. Based on this, we see scope for a takeover price of €1.5-2bn on a debt-free basis," Jefferies analyst Chloe Lemarie said.