Reports: Germany’s Rheinmetall considers acquiring yet another rival

German defence giant Rheinmetall is reportedly looking into acquiring the military division of its rival Naval Vessels Lürssen (NVL), but both companies remained tight-lipped on a potential takeover on Thursday.

NVL, a shipbuilding company that owns a number of shipyards in northern Germany, said in a letter to employees that it was intensifying talks on a potential consolidation.

But the letter, seen by dpa, did not mention Rheinmetall, nor any other company.

Dusseldorf-based Rheinmetall, which has seen its profits and share price soar since European countries began sending military support to Ukraine, is reportedly seeking to acquire NVL’s military division, which would allow it to tap into a new sector.

While Rheinmetall does not yet build ships itself, it already supplies naval guns and laser modules to the German navy, for example.

“The recognition we are now receiving in the wake of the intensified threat situation in the defence sector speaks for itself,” NVL management said in the letter to employees.

At the same time, the industry needs to think about “what our navy and our country need now to boost its defence capabalities, and quick.”

Against this background, NVL has decided to “intensify consolidation talks with potential partners,” the letter continues, pledging to notify employees if talks lead to tangible results.

Rheinmetall has so far also not commented on the reports.

“We won’t talk about it until there are decisions,” said chief executive Armin Papperger at the inauguration of a new artillery plant in northern Germany on Wednesday. “Rheinmetall is always interested in expanding its product portfolio,” he added.”