Kongsberg Gruppen weighs acquisitions amid missile demand

Investing.com -- Norwegian defense company Kongsberg Gruppen is considering mergers and acquisitions as a growth strategy while facing strong demand for its weapons, Chief Executive Officer Eirik Lie said.

"We have a really steep demand for our missiles," Lie said in an interview with Bloomberg Television, pointing to scaled-up capacity for both naval strike and joint strike missiles.

The company may pursue acquisitions of firms operating in core product areas such as anti-drone systems and remote weapon stations, Lie added.

The comments reflect increasing confidence among European defense executives that higher military spending will support years of investment and expansion.

Kongsberg Gruppen's market value on Oslo's stock exchange has grown five-fold since Russia's invasion of Ukraine in early 2022, making it one of the strongest performers in the European defense sector during that period.

Lie identified space and underwater warfare as additional areas of interest. "Two frontiers that are definitely also on our agenda," he said.

The chief executive said European defense spending has increased over the past year but remains below the level required to meet commitments made by leaders in the North Atlantic Treaty Organisation. "We see a positive movement forward to achieve some of the targets," he said.

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