Armin Papperger, CEO of Rheinmetall AG.
Rheinmetall makes a major leap: the German defense group plans to acquire the naval division Naval Vessels Lürssen (NVL) from the Bremen shipbuilding group Lürssen, marking its first entry into military shipbuilding. The plans were confirmed by Rheinmetall on Sunday evening. Now the antitrust authority must approve. The acquisition is planned for early 2026, according to a press release. The purchase price was agreed upon amicably.
With the purchase of NVL, Rheinmetall expands its portfolio to naval shipbuilding and strengthens its position as a leading provider of defense technology in Germany and Europe. “In the future we will be a relevant player on land, at sea, in the air, and in space,” says Armin Papperger, CEO of Rheinmetall AG. Since the start of Russia’s invasion of Ukraine in February 2022, the company’s stock price has about quintupled. Rheinmetall is thus one of the most important weapon suppliers to Ukraine.
Tightened threat environment as justification for the sale
The private shipyard group Lürssen has been split since October 2021 into the naval division NVL and a yard division. With the sale, the Lürssen group aims to signal strength and pave the way for the politically desired consolidation in the German defense industry. By being acquired by the arms company Rheinmetall, Germany’s rapid defense capability could be ensured, said Friedrich Lürssen, managing partner. The weapon systems have become so complex in recent years that it makes sense to bundle them. Rheinmetall plans to take over all NVL locations and employees, according to Lürssen.
NVL states it employs around 2,100 people. The company achieved a revenue of around one billion euros in the 2024 fiscal year and is thus considered a pioneer in research and development of autonomous maritime surface systems. Rheinmetall reports around 40,000 employees at 174 locations and achieved sales of 9.8 billion euros last year.
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