Rheinmetall has reached an agreement to acquire Naval Vessels Lürssen (NVL) from the Bremen-based Lürssen Group, marking a significant advancement in the consolidation of Germany’s defense shipbuilding sector. This acquisition will enable Rheinmetall to assume control of all NVL locations, along with approximately 2,100 employees, as it integrates the division as a distinct business within its operational framework. The financial terms of the agreement have not been disclosed; however, analysts estimate NVL’s market value to be between 1.5 billion and 2 billion euros ($1.7 billion to $2.3 billion), largely attributed to its consistent performance and stable profit margins.
NVL operates four shipyards situated in northern Germany and several international facilities dedicated to constructing customized naval vessels. Recently, the company has also been diversifying its focus towards autonomous maritime systems, aligning with global trends in defense technology. This acquisition comes at a time when Rheinmetall has been experiencing a notable surge in growth, particularly following Russia’s full-scale invasion of Ukraine in 2022. The company has expanded its production lines to include tanks, infantry fighting vehicles, artillery, drones, and air defense systems, with plans for new ammunition plants set to be established in Ukraine and Romania.
Both Rheinmetall and Lürssen have positioned this acquisition as a critical strategic expansion that enhances their influence in naval shipbuilding and fortifies their standing as premier defense technology providers in Germany and across Europe. Armin Papperger, CEO of Rheinmetall, emphasized that the merger of capabilities between Rheinmetall and NVL is expected to foster mutual growth, thereby reinforcing the corporation’s position within the naval sector. He further stated the acquisition would substantively contribute to augmenting the naval defense capabilities of Germany and its NATO allies.
Following the transaction, Lürssen intends to completely pivot its focus towards its civilian megayacht business. This move comes on the heels of NVL’s recent establishment of a joint venture with the British defense firm Kraken Technology, which aims to expedite the development and production of unmanned surface vessels in response to the rising global demand for drone ships. This acquisition not only illustrates Rheinmetall’s ambition for growth within the defense sector but also signals a key transformation within the maritime defense landscape in Europe.
