German naval shipbuilder TKMS has withdrawn its non-binding offer for German Naval Yards Kiel after failing to agree transaction terms with the yard’s French owner, CMN Naval, leaving German defence technology group Rheinmetall as the only publicly known bidder, according to TKMS.
TKMS ended the process on July 21 after confirmatory due diligence and intensive talks over the economic terms of a possible acquisition.
Chief executive Oliver Burkhard called the purchase “an option, but not a must”. TKMS examined whether a takeover could improve its use of shipyard space in Kiel but concluded that the acquisition was unnecessary under the proposed parameters and conditions.
The neighbouring shipbuilders share an entrance to the Kiel shipyard complex. German Naval Yards developed from the former surface-vessel operations of Howaldtswerke-Deutsche Werft and is owned by France’s family-owned CMN Naval group.
TKMS plans to consider other ways of improving logistical flexibility in Kiel. Burkhard said the company could execute its existing and future order volume reliably and on schedule using its Kiel and Wismar yards.
TKMS submitted its non-binding offer in January 2026. Rheinmetall disclosed a rival non-binding proposal on May 7 and began due diligence, with a binding offer possible after completion of the review. Neither side disclosed financial terms.
Rheinmetall completed its acquisition of Naval Vessels Lürssen on March 1, 2026, and placed the business within its newly created Naval Systems division as part of its expansion into naval shipbuilding.
TKMS develops and builds conventional submarines, naval surface vessels and maritime electronics. It operates yards in Kiel, Wismar and Itajaí, Brazil, and had an order backlog of €20.6bn ($23.5bn) at March 31, 2026.
German Naval Yards builds offshore patrol ships, corvettes and frigates. Its Kiel facility includes a 426-metre dry dock and a portal crane with lifting capacity of up to 900 tonnes.
CMN Naval is the French family-owned parent group of German Naval Yards.