BERLIN — German industrial giant Thyssenkrupp is refusing to back away from its effort to acquire shipbuilder German Naval Yards, even after rival defense heavyweight Rheinmetall entered the race with a competing offer.
The battle is shaping up as a high-stakes contest inside Germany’s rapidly expanding defense industry, where demand for naval and military production capacity has surged across Europe.
Speaking about the competition, Oliver Burkhard, chief executive of TKMS — Thyssenkrupp’s marine systems division — delivered a pointed message aimed at Rheinmetall.
“Money alone doesn’t build ships,” he said.
Burkhard acknowledged that Rheinmetall appears financially stronger than TKMS, but made clear he has no intention of entering a bidding war that would make little economic sense for his company.
“I have a specific price in mind,” he said, according to German news agency dpa.
Both companies are competing to buy German Naval Yards, currently owned by French shipbuilding group CMN Naval. The French company has not publicly commented on the takeover reports despite requests from media outlets.
Rheinmetall revealed last Thursday that it had submitted a non-binding offer for the shipyard. TKMS, however, has reportedly been pursuing the acquisition for a much longer period.
The timing reflects a broader transformation underway in Germany’s defense sector.
Rheinmetall, traditionally known for armored vehicles and ammunition production, only recently expanded into shipbuilding after acquiring the naval division of Lürssen, a German shipbuilder based in Bremen. That deal was finalized in late February.
Meanwhile, TKMS — best known for submarine construction — already shares a shipbuilding site in Kiel with German Naval Yards, giving Thyssenkrupp an operational advantage and potentially making integration easier.
German Naval Yards employed around 400 workers as of August 2025.
As Europe ramps up military spending and naval modernization efforts, control of strategic shipbuilding assets is becoming increasingly valuable — and increasingly competitive.
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