FRANKFURT (dpa-AFX Broker) - Rheinmetall shareholders can hope for further price gains on Monday following the announcement of a takeover. On the Tradegate trading platform, the defense contractor's shares rose 0.5 percent in pre-market trading. This would continue their upward trend.
Rheinmetall has agreed with the Bremen-based shipbuilding group Lürssen to purchase its military division NVL. With the acquisition of the shipbuilder, the company aims to broaden its base and tap into the naval sector as an additional business area.
However, the transaction comes as no surprise, as it had been the subject of speculation for some time. Since both sides have agreed to keep the purchase price confidential, traders say it is difficult to assess the financial impact of the deal on Rheinmetall.
Jefferies analyst Chloe Lemarie believes that NVL generates a double-digit margin and that there are ambitions to increase this to the mid-teens, including synergies. On this basis, she assumes a takeover price in the range of €1.5 to €2 billion, excluding debt. /gl/zb
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