Each week, Army Technology, Airforce Technology and Naval Technology’s editors select a deal that illustrates the themes driving change in our sector. The deal may not always be the largest in value, or the highest profile. But we select it because of what it tells us about where the leading companies are focusing their efforts, and why. We pick apart the deal itself, and the industry theme behind it. This new, thematic deal coverage is driven by our underlying Disruptor data which tracks all major deals, patents, company filings, hiring patterns and social media buzz across our sectors.

German defence supplier Rheinmetall acquired the Spanish ammunition manufacturer, Expal Systems SAU, in a €1.2bn ($1.3bn) deal on 1 August 2023.

Rheinmetall acquisition expands its position as one of the largest ammunition and armament providers to Nato armed forces. The deal will systematically increase its production capacity: especially for artillery, mortar, and medium calibre munitions.

Moving forward, the subsidiary will operate under the name “Rheinmetall Expal Munitions, SAU.”

How well do you really know your competitors?

Access the most comprehensive Company Profiles on the market, powered by GlobalData. Save hours of research. Gain competitive edge.

Company Profile – free sample

Thank you!

Your download email will arrive shortly

Not ready to buy yet? Download a free sample

We are confident about the unique quality of our Company Profiles. However, we want you to make the most beneficial decision for your business, so we offer a free sample that you can download by submitting the below form

By GlobalData

Worldwide ammunition production shortage

In a world where countries are now rushing to mobilise their war stocks, the acquisition provides Rheinmetall with swift access to greater production capacity, covering the entire ammunition production value-added chain, with multiple plants in Spain and a demilitarisation and soil remediation business in the United States.

Already, Rheinmetall has supplied the Ukrainian armed forces with large amounts of medium and large calibre munitions, including 20mm automatic cannon rounds for the 40 Marder infantry fighting vehicles the German Bundeswehr supplied Ukraine, and 105mm and 120mm tank ammunition for the Leopard 1 and Leopard 2. In addition, a first lot of 35mm ammunition for the Gepard anti-aircraft tank will soon be ready for shipment.

Given the likelihood of strong future demand in many countries, the acquisition places Rheinmetall in a favourable position to respond to complex new ammunition procurement requirements.