Germany's Rheinmetall to Sell Auto Business to Focus Entirely On Defense

By Mauro Orru

Arms maker Rheinmetall agreed to sell its automotive business to Munich-based industrial group Aequita for a provisional price of 350 million euros ($407.1 million), moving to shed a unit that has grappled with a challenging market and focus instead on its burgeoning defense business.

The German group said it had signed an agreement to transfer ownership of what was previously its power systems division after embarking on talks with potential buyers last year. The business, which generated around 2 billion euros in revenue last year, has been classified as a discontinued operation since Rheinmetall reported annual results.

The company booked an impairment of 350 million euros in 2025 and said it would recognize an additional noncash impairment of around 200 million euros, though the provision has no impact on liquidity or earnings as it is allocated to discontinued operations.

Rheinmetall said the deal is expected to be completed in the fourth quarter, subject to regulatory approval.

Write to Mauro Orru at [e-mail]

(END) Dow Jones Newswires

06-03-26 0940ET