Rheinmetall sells auto unit to Aequita for 350 million
German defense contractor Rheinmetall is selling its struggling automotive business to Munich-based Aequita as it shifts focus entirely toward military production. The deal is expected to close in the fourth quarter and will result in additional impairment charges of around 200 million euros.
RHEINMETALL AG will sell its Power Systems automotive division to investment firm Aequita for approximately €350 million ($406 million). This divestiture marks the final stage of the group's multi-year transition into a pure-play defense contractor. The exit removes a low-margin legacy business to prioritize record military hardware demand across Germany.
### Shifting Focus to Defense Growth The provisional €350 million price tag remains subject to adjustment before the transaction closes. Rheinmetall expects the deal to finalize during the fourth quarter. This divestiture follows a period of rapid growth for the group's military hardware sales.
