Inocea Group Looks to Acquire of Warship Builder GNYK

British defence, marine and industrial firm Inocea Group is in talks to buy warship builder German Naval Yards Kiel (GNYK), a person familiar with the matter said, highlighting growing demand for defence assets fuelled by geopolitical tensions.

The interest suggests bidding competition for GNYK, given the CEO of Germany's TKMS said last week the world's largest maker of non-nuclear submarines was considering a bid for the company headquartered in the same port city of Kiel.

Defence companies and investors across Europe are moving to expand industrial capacity, under pressure from rising military spending, stretched order books and governments urging faster delivery of naval and defence equipment after years of underinvestment.

Inocea Group is privately owned and controlled by its founders, Alex Vicefield and James Davies, and has offices in London and Monaco, according to its website.

A spokesperson for Inocea said the group was continually assessing ways to strengthen its strategic position in specialised shipbuilding, whether through organic growth or M&A.

"This is an approach consistent with the growth of our Canadian business and recent expansion in Finland and the United States," the spokesperson said.

GNYK CEO Rino Brugge told Reuters the company was always open to strategic international partnerships,