Armin Papperger, CEO of Rheinmetall, said that the company is considering further acquisitions within the naval sector. In September, Rheinmetall agreed to buy the warship division from German shipbuilder Luerssen at a price of 1.35 billion euro ($1.57 billion).

With a rise in defense spending, the long-awaited German naval consolidation has been accelerated. Rheinmetall estimates that Germany could spend up to 31 billion euro on naval vessels in 2035.

"We entered the maritime business and we aim to grow. We also want to grow if there are good opportunities.

Papperger refused to disclose potential acquisition targets, but industry sources suggest that Europe's largest ammunition manufacturer may be interested German Naval Yards Kiel.

GNYK, a shipyard located next to GNYK, is currently in negotiations with TKMS to purchase the nearby shipyard.

Papperger played back?talks of Rheinmetall eyeing GNYK.

I don't have any information about it at the moment. Someone else has said he wants to buy the items. "We are not currently in negotiations."

When asked if Rheinmetall would be interested in GNYK he replied: "We'll see."

The CEO stated that Rheinmetall is well on its path to closing the Luerssen transaction, and?that he expects European antitrust authorities will sign off on the deal before the end January.

Since the Russian invasion of Ukraine 2022, Rheinmetall has expanded its defense business.

The?German defense industry benefits from an increase in defence spending. This is due to a shift in U.S. policy, which is increasing pressure on Europe to strengthen its defences against Russia.

Papperger stated on Thursday that?Rheinmetall anticipated a potential order take of 80 billion euro ($93.54billion) in 2026. He cited government procurement plans for the Boxer APC - an armoured fighting car, the frigates F126 & F127 and an additional batch Puma infantry combat vehicles.

Papperger stated that the Boxer orders alone amounted 37,7 billion euros and the orders of the frigates totaled 12-13 billion euro.

(source: Reuters)