Rheinmetall Expands into Naval Defence with Acquisition of Luerssen’s Warship Division

Germany’s Rheinmetall has announced a landmark deal to acquire Naval Vessels Luerssen (NVL), the military shipbuilding arm of the Luerssen Group, as part of its strategic expansion into the naval defence sector.

The agreement, confirmed late Sunday by both companies, represents a significant step for Rheinmetall, which has long been a leading supplier of armoured vehicles, ammunition, and advanced defence systems, including critical support for Ukraine in its ongoing conflict with Russia.

NVL, based in the northern port city of Bremen, is a key player in military shipbuilding and will bolster Rheinmetall’s ability to meet rising demand for naval capabilities. The move comes amid a surge in European rearmament following Russia’s 2022 invasion of Ukraine, coupled with growing calls from U.S. President Donald Trump for Europe to shoulder more responsibility for its own defence.

“Rheinmetall is expanding its portfolio to include naval shipbuilding,” the Düsseldorf-based defence giant said in a statement, citing “a massive increase in demand from naval forces and rising procurement budgets.”

Friedrich Luerssen, managing partner of the Luerssen Group, described the acquisition as a necessary step. “Against the backdrop of the heightened threat situation in particular, we consider consolidation within the defence industry to be necessary and sensible,” he said.

Rheinmetall shares rose 2.4 percent on the Frankfurt stock exchange following the announcement. The companies aim to finalize the deal in early 2026, pending regulatory approval. Financial details of the transaction have not been disclosed.