WASHINGTON – Germany’s largest defense contractor, Rhinemetall, is considering a possible acquisition of Munich-based laser communications terminal maker Mynariq, a move that could reverse Rocket Lab’s previously announced plan to buy the company.
German media first reported Rhinemetall’s interest, citing a desire to place critical aerospace and laser communications technology under German and European control. Rhinemetal has not commented publicly. The reports come as Germany and other European nations step up scrutiny of foreign acquisitions involving sensitive defense technologies.
Long Beach, California-based launch services provider and satellite maker Rocket Lab said in March it planned to acquire Mynariq for about $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 attracted political attention as Europe accelerates efforts to build domestic space and defense capability.
The backdrop is a sharp increase in German defense spending following Russia’s invasion of Ukraine and growing uncertainty about long-term US security commitments. Across Europe, governments are combining higher defense budgets with industrial policies aimed at strengthening “sovereign” technological capabilities.
Laser communication terminals fall into exactly the same category. Minarik develops optical terminals that transmit data between satellites using laser links, a technology considered essential for the next generation of defense and commercial constellations. Compared with traditional radio-frequency systems, laser links can transfer data at higher rates and with greater resistance to interference, making them attractive for military networks.
Minarik’s CONDOR Mk3 optical terminal is designed for inter-satellite links and is already flying on spacecraft purchased 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 flexible communications and missile-tracking capabilities.
For Rocket Lab, the acquisition of Minarik will secure access to a critical subsystem and expand its footprint in Europe. The company is building its satellite manufacturing business along with its launch operations and has established itself as an end-to-end provider of space services. Control over laser communications technology would reduce reliance on outside suppliers for satellites destined for the US government and allied customers.
Minarik, on the other hand, has faced financial stress in recent years as it has ramped up production and operated despite manufacturing setbacks. Despite those challenges, its technology has become strategically important as Western governments push to deploy enhanced constellations in low Earth orbit.
