Italian defense giant Leonardo has finalized a significant agreement to acquire Iveco Defence Vehicles (IDV), a move poised to reshape the European land defense landscape. This strategic acquisition, valued at €1.7 billion, underscores Leonardo’s commitment to strengthening its presence in a market segment anticipated to experience substantial expansion in the coming years.
The landmark deal brings an end to protracted speculation surrounding the future of the military vehicle manufacturer. This decisive action by Leonardo ensures that IDV, a crucial player in specialized vehicle production, remains under Italian ownership, aligning with national political interests keen on retaining domestic control over key defense assets.
Leonardo CEO Roberto Cingolani emphasized the importance of this transaction, stating that it “reinforces Leonardo’s position as a reference player in the European land defense market.” This sentiment highlights the company’s ambition to be a leading force in providing critical defense solutions across the continent, particularly in the realm of advanced military vehicles.
Interestingly, Cingolani revealed that Leonardo had initially explored a joint acquisition of IDV with German industrial group Rheinmetall. However, the Italian firm ultimately opted to proceed independently, with the CEO citing it as a “simpler and more convenient” solution for Leonardo’s long-term strategic objectives within the defense industry.
IDV, a robust entity with a workforce of 2,000, has demonstrated remarkable financial growth. Last year, the company saw its revenue climb by 15% to €1.13 billion, reflecting a heightened demand for specialized armored vehicles and defense equipment across the global market.
Despite the change in the IDV acquisition plan, Leonardo continues to engage in significant collaborations with Rheinmetall. These partnerships include ambitious plans for the Italian army, such as the development and production of 1,050 new infantry fighting vehicles based on the Rheinmetall Lynx platform, and 132 tanks utilizing Rheinmetall’s cutting-edge Panther KF51 design.
Furthermore, Leonardo and IDV already share a successful joint venture known as CIO. This established partnership is responsible for manufacturing essential military hardware for the Italian army, including VBM wheeled fighting vehicles and wheeled Centauro tanks, reinforcing their proven capability in co-developing advanced land defense systems.
This strategic consolidation by Leonardo not only secures a vital component of Italy’s armor stable but also positions the company to capitalize on evolving demands within the international land defense market, ensuring a robust future for critical vehicle production and technological advancements.
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