Rheinmetall CEO Says 7 Parties Interested in Civilian Business
Rheinmetall CEO Says 7 Parties Interested in Civilian Business

Rheinmetall CEO Says 7 Parties Interested in Civilian Business

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Rheinmetall talking to several parties over deal for automotive division

Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business. Handelsblatt reported that financial investor One Equity Partners (OEP) was one of the potential parties. CEO Armin Papperger reiterated in May that the Power Systems division was no longer a core part of the group. The company wants to focus on its booming military business.

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A logo of Germany’s Rheinmetall AG is displayed at the company’s new F-35 fighter jet parts plant in Weeze, Germany, July 1, 2025. REUTERS/Thilo Schmuelgen/File Photo Purchase Licensing Rights , opens new tab

DUESSELDORF, July 16 (Reuters) – Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business, the company said on Wednesday after newspaper Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP).

“Rheinmetall has for some time received purchase enquiries from potential interested parties and is in discussions in a competitive process with several bidders,” the company said.

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The defence contractor wants to put the civilian sector in good hands and is examining all possibilities with the greatest care, it added.

Citing financial and sector sources, Handelsblatt reported that OEP was one of the potential parties. Rheinmetall declined to comment on that specifically.

An OEP representative said the company had no comment.

Rheinmetall CEO Armin Papperger reiterated in May that the Power Systems division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

The company wants to focus on its booming military business, Papperger has said.

Power Systems was the only division of the company to report a fall in business in the first quarter. Sales were down nearly 7% at 505 million euros ($585.55 million) and operating profit plunged by 70.4 percent to 9 million euros.

($1 = 0.8624 euros)

Reporting by Matthias Inverardi Writing by Madeline Chambers Editing by Miranda Murray and David Goodman

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

Source: Reuters.com | View original article

Rheinmetall talking to several parties over deal for automotive division

Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business. Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP) Power Systems was the only division of the company to report a fall in business in the first quarter.

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Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business, the company said on Wednesday after newspaper Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP).

“Rheinmetall has for some time received purchase enquiries from potential interested parties and is in discussions in a competitive process with several bidders,” the company said.

The defence contractor wants to put the civilian sector in good hands and is examining all possibilities with the greatest care, it added.

Citing financial and sector sources, Handelsblatt reported that OEP was one of the potential parties. Rheinmetall declined to comment on that specifically.

An OEP representative said the company had no comment.

Rheinmetall CEO Armin Papperger reiterated in May that the Power Systems division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

The company wants to focus on its booming military business, Papperger has said.

Power Systems was the only division of the company to report a fall in business in the first quarter. Sales were down nearly 7% at 505 million euros ($585.55 million) and operating profit plunged by 70.4 percent to 9 million euros.

($1 = 0.8624 euros)

Source: Tradingview.com | View original article

Rheinmetall talking to several parties over deal for automotive division

Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business. Handelsblatt reported that financial investor One Equity Partners (OEP) was one of the potential parties. The defence contractor wants to put the civilian sector in good hands and is examining all possibilities.

Read full article ▼
DUESSELDORF (Reuters) -Germany’s Rheinmetall is holding talks with several potential bidders for its Power Systems auto supply business, the company said on Wednesday after newspaper Handelsblatt reported it was speaking to financial investor One Equity Partners (OEP).

“Rheinmetall has for some time received purchase enquiries from potential interested parties and is in discussions in a competitive process with several bidders,” the company said.

The defence contractor wants to put the civilian sector in good hands and is examining all possibilities with the greatest care, it added.

Citing financial and sector sources, Handelsblatt reported that OEP was one of the potential parties. Rheinmetall declined to comment on that specifically.

An OEP representative said the company had no comment.

Rheinmetall CEO Armin Papperger reiterated in May that the Power Systems division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

The company wants to focus on its booming military business, Papperger has said.

Power Systems was the only division of the company to report a fall in business in the first quarter. Sales were down nearly 7% at 505 million euros ($585.55 million) and operating profit plunged by 70.4 percent to 9 million euros.

($1 = 0.8624 euros)

(Reporting by Matthias InverardiWriting by Madeline ChambersEditing by Miranda Murray and David Goodman)

Source: Uk.finance.yahoo.com | View original article

Rheinmetall’s Strategic Shift: A Bold Pivot from Civilians to Defense

German defense giant Rheinmetall AG is making a dramatic strategic pivot, prioritizing its booming military business over its struggling civilian divisions. CEO Armin Papperger announced during the company’s May 13 shareholder meeting that discussions with potential buyers for its Power Systems division are underway. This move underscores a broader realignment toward defense, driven by geopolitical demand and the civilian division’s financial struggles. For investors, the pivot presents a high-reward, high-risk opportunity, but investors should remain cautious. The civilian divestiture could expose the company to geopolitical volatility and leave investors exposed to execution risks. The question now is whether the civilian exit will solidify the company’s position as a defense powerhouse or leave investors to exposed to the risk of a future military spending boom. The defense division’s dominance is further cemented by a record order backlog of €63 billion—up from €40 billion in 2024—reflecting strong demand from Europe, Ukraine, and other regions. Analysts estimate global defense budgets could rise by 5% annually through 2030.

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German defense giant Rheinmetall AG is making a dramatic strategic pivot, prioritizing its booming military business over its struggling civilian divisions. CEO Armin Papperger announced during the company’s May 13 shareholder meeting that discussions with potential buyers for its Power Systems division—focused on automotive and energy—are underway. This move underscores a broader realignment toward defense, driven by geopolitical demand and the civilian division’s financial struggles.

The Financial Rationale: Defense Soars, Civilians Struggle

Rheinmetall’s first-quarter 2025 results reveal stark contrasts between its two divisions. The defense segment saw sales surge 73% year-on-year to €1.795 billion, fueled by demand for armored vehicles, ammunition, and electronic warfare systems. Meanwhile, the civilian Power Systems division reported a 6.7% sales decline to €505 million, with operating profit plummeting 70% to €9 million. Its operating margin shrank to 1.8%, down from 5.8% in 2024, as automotive sector weakness and delayed projects weighed on performance.

The defense division’s dominance is further cemented by a record order backlog of €63 billion—up from €40 billion in 2024—reflecting strong demand from Europe, Ukraine, and other regions. This contrasts sharply with Power Systems’ civilian backlog, which fell 17% to €7 billion.

Why Now? Geopolitics and the Military Spending Boom

Papperger framed the pivot as a necessity in a world where “liberal values” face escalating threats. The Ukraine conflict, rising tensions in Eastern Europe, and global defense spending trends have created a tailwind for military contractors. Analysts estimate global defense budgets could rise by 5% annually through 2030, with Europe alone accounting for $400 billion in new spending plans.

Rheinmetall is capitalizing on this momentum. By exiting underperforming civilian markets, it can redirect resources to expanding defense production capacity—such as new factories and acquisitions—and capitalize on its existing strengths in armored vehicles and precision munitions.

Potential Buyers and Risks

While no formal bids have been disclosed, speculation centers on German industrial giants like Siemens AG (OTC:SI) and Thyssenkrupp (ETR:TKA), which could acquire Power Systems’ advanced manufacturing or energy technologies. A Chinese automaker’s rumored interest in EV components also highlights the global reach of the division’s assets.

However, risks abound. The sale’s success hinges on geopolitical factors: European regulators may scrutinize Chinese bids, while U.S.-EU trade tensions could complicate cross-border deals. Additionally, the civilian division’s weak margins and repurposed factories—now being converted to defense production—may deter suitors seeking profitable, standalone assets.

The Investment Case: Riding the Defense Wave

For investors, Rheinmetall’s pivot presents a high-reward, high-risk opportunity. The stock has risen 25% year-to-date amid defense optimism, but it remains volatile. Key catalysts include:

– Finalizing the civilian sale (expected by late 2025), which could unlock ~€1.5–2 billion in value.

– Defense order wins, particularly in the U.S., U.K., and Italy, where Rheinmetall is bidding for armored vehicle contracts.

– Geopolitical events, such as escalation in Ukraine or NATO expansion, boosting military spending.

Conclusion: A Calculated Bet on Defense Dominance

Rheinmetall’s decision to focus on defense is a bold, data-backed move. With civilian divisions dragging down margins and geopolitical risks fueling military demand, the company’s strategic shift aligns with a clear market opportunity.

The numbers speak for themselves: defense sales now account for 70% of total revenue, and the division’s operating profit nearly doubled to €206 million in Q1. Even if the civilian sale falls through, Rheinmetall’s scale and order backlog suggest resilience.

Investors should remain cautious, however. The civilian divestiture’s timeline and valuation are uncertain, and overreliance on defense could expose the company to geopolitical volatility. Still, for those willing to bet on a prolonged military spending boom, Rheinmetall’s pivot positions it to lead in a sector that’s far from firing its engines.

As Papperger noted, Rheinmetall is “needed” in a turbulent world—a claim backed by €63 billion in orders and a defense sector on the rise. The question now is whether the civilian exit will solidify its place as a defense powerhouse or leave investors exposed to execution risks. The answer could redefine the company’s future—and the trajectory of European military spending—for decades.

Source: Ainvest.com | View original article

Rheinmetall in talks with suitors for civilian businesses, CEO says

Rheinmetall has been contacted by potential buyers of its civilian businesses and is in talks with them. German defence contractor seeks to focus on its booming military business. CEO Armin Papperger reiterated that the Power System division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

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Armin Papperger, CEO of German defense and automotive group Rheinmetall AG poses next to a statue of a bull outside the stock exchange in Frankfurt, Germany, March 20, 2023. REUTERS/Alex Kraus/File photo Purchase Licensing Rights , opens new tab

Item 1 of 2 Armin Papperger, CEO of German defense and automotive group Rheinmetall AG poses next to a statue of a bull outside the stock exchange in Frankfurt, Germany, March 20, 2023. REUTERS/Alex Kraus/File photo

DUESSELDORF, May 9 (Reuters) – Rheinmetall (RHMG.DE) , opens new tab has been contacted by potential buyers of its civilian businesses and is in talks with them, as the German defence contractor seeks to focus on its booming military business, its CEO said.

“Rheinmetall has for a while received expressions of interest from potential buyers and is in talks with them,” CEO Armin Papperger said in a speech to be held at the May 13 annual shareholder meeting, posted on the company’s website on Friday.

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Papperger reiterated that the Power System division, which serves civilian industries including automotive and energy, was no longer a core part of the group.

The company has also been seeking to convert certain car part factories to be used by its defence businesses.

Writing by Ludwig Burger; editing by Matthias Williams and Miranda Murray

Our Standards: The Thomson Reuters Trust Principles. , opens new tab

Source: Reuters.com | View original article

Source: https://www.bloomberg.com/news/articles/2025-07-24/rheinmetall-ceo-says-7-parties-interested-in-civilian-business

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