Rheinmetall announced on Wednesday that it will sell its civilian automotive business to Munich-based industrial group Aequita for approximately €350 million, a move the company described as one of the last steps in its strategic reorientation toward defense-focused operations.
The agreement transfers 100% of the shares in the automotive unit to Aequita. The provisional purchase price is subject to standard market adjustment mechanisms, which means the actual amount paid could be adjusted in line with contractual terms. The companies anticipate completing the transaction in the fourth quarter of 2026.
In a statement accompanying the deal, Rheinmetall pointed to worsening conditions in the automotive sector as a factor that influenced the circumstances and terms of the final agreement. The company quoted the deterioration in that market as having had a material effect on negotiations.
Rheinmetall has been marketing its Power Systems auto business since 2025. The unit was formally designated as a discontinued operation in December 2025. At the time that designation was recorded, the group booked a non-cash impairment charge of about €350 million associated with the discontinued operations.
The company emphasized that the impairment recorded against the discontinued auto business does not have an impact on the liquidity or the earnings of Rheinmetall’s continuing operations. That accounting recognition was non-cash in nature, the company said.
Transaction specifics provided publicly are limited to the headline purchase price, the transfer of full ownership and the projected timing for closing. The provisional nature of the agreed price leaves open the possibility of post-signing adjustments under ordinary market mechanisms, and the parties have set a target timeframe for completion in late 2026.
Beyond the statements contained in the announcement, no additional financial details, operational transition plans or integration steps were disclosed. The sale continues Rheinmetall’s program of focusing its business on defense activities while exiting civilian automotive operations.