Bild, citing sources in the industry, reported Wednesday that Rheinmetall, a defence group, wants to buy German shipbuilder Naval Vessels Luerssen.

The CEO of Rheinmetall said that it was in discussions with partners to invest in the Naval Business, opening up a new business segment for the manufacturer of tanks and ammunition.

Bild reports that the Luerssen family, which owns the company, intends to divest their military shipyards located in Hamburg, Wilhelmshaven, and Wolgast, to concentrate on the construction of megayachts.

Bild reports that Rheinmetall's supervisory council intends to review the purchase within the next few weeks.

A person with knowledge of the situation told Bild that the deal could still fail, as the Luerssens would have to approve the purchase.

Rheinmetall has not yet commented on the report. NVL didn't immediately respond to a request for comment sent via email. (Reporting and editing by Thomas Seythal, Matthias Inverardi and Miranda Murray)

(source: Reuters)