NVL's recent projects include constructing five corvettes, though delays have occurred due to cybersecurity upgrades prompted by the Ukraine conflict, and the company has faced setbacks with the F126 frigate series due to software issues.

NVL, which operates four shipyards in Germany and has international sites, specializes in building military ships for the German Navy and other clients, with a strong order book including a contract for three Type 424 intelligence ships.

The deal's completion is targeted for early 2026, and industry sources suggest the purchase price is likely substantial, although both companies have kept financial details confidential.

The deal, which is still awaiting approval from antitrust authorities, is expected to close early next year, with the transaction details including financial terms remaining undisclosed.

German defense giant Rheinmetall has announced plans to acquire Naval Vessels Luerssen (NVL), the military division of the German shipbuilder Luerssen Group, as part of its strategy to diversify beyond weapons and defense systems.

This acquisition aligns with Rheinmetall's broader goal to expand into naval shipbuilding, especially amid a global surge in maritime defense investments driven by recent conflicts and threats to underwater infrastructure.

Since Russia's invasion of Ukraine in February 2022, Rheinmetall's stock has surged twentyfold, and it has become a key weapons supplier to Ukraine, partly financed by the German government.

The company also collaborates with ThyssenKrupp's TKMS on large projects like the F126 frigates, which have experienced delays and technical challenges.

Industry analysts see this move as part of a broader industry trend toward consolidation, with the sale potentially facilitating further mergers or collaborations in Germany's naval shipbuilding sector.

NVL holds contracts worth around seven billion euros and is involved in expanding autonomous surface vessel manufacturing through a joint venture with Kraken Technology Group, indicating growth potential in autonomous ships and drone technology.

The acquisition reflects the high risks associated with building next-generation warships but also highlights Rheinmetall's strategic push into maritime defense, including advanced military technology like next-generation missile tank destroyers developed with Lockheed Martin.

With approximately 40,000 employees across 174 locations, Rheinmetall reported revenues of 9.8 billion euros last year, while NVL reported revenues of about one billion euros in 2024.