After months of rumours and intense negotiations, Leonardo has signed an agreement to acquire Iveco Defence, a division of the Iveco Group, for €1.7 billion, which will be financed with the (excellent) cash available (the rest of the Iveco group will pass to Tata).

This is a high-profile strategic operation for Italy, at a time when the land defence sector has significant prospects for consolidation and further development. Leonardo is thus positioning itself on the market as a player capable of offering an integrated solution that includes platforms, wheeled and tracked vehicles, turrets, weapon systems and electronic and combat management components. The transaction obviously also includes the Iveco-Oto Melara consortium (CIO), whose experience at this point is surpassed, and Leonardo becomes the sole point of contact for customers, starting with the Italian Army, which is pursuing a formidable modernisation plan.

"The acquisition of Iveco Defence is a key step in the development of our inorganic growth strategy to support the full implementation of the Business Plan," said Roberto Cingolani, CEO and General Manager of Leonardo, who continued: "The transaction consolidates our position as a leading player in the European land defence sector, a market with strong future growth prospects." The transaction is expected to close in the first quarter of 2026, subject to regulatory approval.

It is now to understand whether Iveco Defence will continue to operate as a separate industrial entity, albeit controlled by Leonardo, or whether it will be integrated into the Electronics Division or, alternatively, whether a Defence Systems Division will be recreated, with the two strong centres of La Spezia and Bolzano where the “heavy” activities related to mechanics will be concentrated. Clearly linked to all this is the issue of the supply chain and the relationships that will exist with the rest of the Iveco and Tata groups. At the same time, it is still to be clarified what the future is for Iveco Defence's military trucks business (based in Piacenza). A clue already comes from today's press release, which states that: "Leonardo will work with its partner Rheinmetall to assess the opportunity to enhance the value of the heavy vehicle segment."

Follow us on Telegram, Facebook and X