TKMS Drops Out of Race to Acquire GNYK

German warship builder TKMS said on Tuesday it is no longer interested in acquiring smaller shipyard German Naval Yards, also known as GNYK.

That would make German defence group Rheinmetall the only bidder currently in the running to purchase the ship maker, which has about 350 staff.

Handelsblatt first reported on TKMS dropping out of the bidding earlier on Tuesday.

Europe's naval firms are exploring tie-ups and partnerships amid accelerating consolidation in the booming defence sector, with Rheinmetall, the region's top ammunition maker, having last year joined the fray after the purchase of shipmaker NVL.

TKMS CEO Burkhard said in May the group would not pay "any price in the world" for GNYK after Rheinmetall emerged as a rival suitor.

Rheinmetall declined to comment.

(Reuters)