German defense firm said to be weighing bid for Mynaric

WASHINGTON — Rheinmetall, Germany’s largest defense contractor, is weighing a potential acquisition of Munich-based laser communications terminal maker Mynaric, a move that could upend Rocket Lab’s previously announced plan to buy the company.

German media first reported Rheinmetall’s interest, citing a desire to keep critical aerospace and laser communications technology under German and European control. Rheinmetall has not commented publicly. The reports come as Germany and other European nations intensify scrutiny of foreign takeovers involving sensitive defense technologies.

Rocket Lab, the Long Beach, Calif.-based launch services provider and satellite manufacturer, said in March it planned to acquire Mynaric for roughly $150 million, subject to approval by German authorities under foreign direct investment rules. Nearly a year later, regulators have yet to sign off, and the deal has drawn heightened political attention as Europe accelerates efforts to build domestic space and defense capacity.

The backdrop is Germany’s sharp increase in defense spending following Russia’s invasion of Ukraine and growing uncertainty about long-term U.S. security commitments. Across Europe, governments are pairing higher defense budgets with industrial policies aimed at strengthening “sovereign” technological capabilities.

Laser communications terminals fall squarely into that category. Mynaric develops optical terminals that transmit data between satellites using laser links, a technology viewed as essential for next-generation defense and commercial constellations. Compared with traditional radio-frequency systems, laser links can move data at higher rates and with greater resistance to interference, making them attractive for military networks.

Mynaric’s CONDOR Mk3 optical terminal is designed for inter-satellite links and is already flying on spacecraft procured by the U.S. Space Development Agency for the Proliferated Warfighter Space Architecture, a planned constellation of low Earth orbit defense satellites intended to provide resilient communications and missile-tracking capabilities.

For Rocket Lab, acquiring Mynaric would secure access to a critical subsystem and expand its footprint in Europe. The company has been building out its satellite manufacturing business alongside its launch operations and has positioned itself as an end-to-end provider of space services. Control over laser communications technology would reduce reliance on external suppliers for satellites destined for U.S. government and allied customers.

Mynaric, for its part, has faced financial strains in recent years as it scaled production and worked through manufacturing setbacks. Despite those challenges, its technology has become strategically significant as Western governments push to deploy proliferated constellations in low Earth orbit.