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

Bild reports that the Luerssen family who owns the shipbuilder plan to divest their military shipyards located in Hamburg, Wilhelmshaven, and Wolgast so they can focus on the construction of megayachts.

Bild reported that Rheinmetall's supervisory committee intends to review the purchase within the next few weeks. However, a source familiar with the situation said any acquisition might still fail, as it would require the Luerssen family to approve the deal.

In response to a question about the Bild article, Rheinmetall CEO Armin Pappler told reporters that his company is always interested in expanding their product range, but did not provide any further details.

Papperger stated earlier this month Rheinmetall, a manufacturer of tanks and ammunition was in discussions with partners regarding investment in the maritime sector.

NVL didn't immediately respond to a request for comment.

Rheinmetall has been one of Europe's biggest beneficiaries in the push to upgrade defence capabilities after Russia's invasion.

Dennis Goege told WirtschaftsWoche, the European Head of U.S. Defence Contractor Lockheed Martin that Rheinmetall was in talks to manufacture missiles, including ATACMS, Hellfire and other types, at its expanding Unterluess facility in northern Germany.

In April, the two companies announced that their cooperation would extend beyond a Memorandum of Understanding signed in 2024. Lockheed will provide missile and rocket technologies, while Rheinmetall will manufacture and sell missiles in Europe.

Goege stated that the final missile list had not yet been determined.

Rheinmetall, who this year began making fuselage components for Lockheed F-35 fighter planes, declined comment on the report.

Papperger also signed a contract on Wednesday to build a factory for powder in Romania. The deal is worth about half a billion euro. This follows the announcement on Tuesday that Rheinmetall would produce gunpowder in Bulgaria and 155 mm artillery in Bulgaria, under two joint ventures. (Reporting and editing by Thomas Seythal, Maria Martinez and Kirsten Donovan, and Sabine Siebold and Miranda Murray.

(source: Reuters)