Strategic Expansion in European Land Defence
Leonardo has signed an agreement to acquire Iveco Defence Vehicles from the Iveco Group for €1.7 billion. The transaction, announced on 30 July, will be financed through Leonardo’s existing cash reserves and is expected to close in the first quarter of 2026, subject to regulatory approvals.
This acquisition marks a major step in Leonardo’s strategy to become a full-spectrum land defence manufacturer. By integrating Iveco Defence’s capabilities, Leonardo aims to offer comprehensive solutions across tracked and wheeled platforms, combining armoured vehicles with advanced electronic systems.
Combining Expertise and Expanding Market Reach
According to Leonardo, the deal will strengthen its operational capabilities by merging its sensor, turret, and electronics technologies with Iveco Defence’s vehicle portfolio. Both companies are expected to benefit from complementary technologies, broader commercial channels, and enhanced manufacturing bases in Europe and South America.
The acquisition is also set to increase Leonardo’s access to export markets and improve its offering to European customers at a time when demand for armoured vehicles is rising across NATO member states due to operational requirements in Ukraine and replenishment of military stockpiles.
“This acquisition represents a decisive step in consolidating Leonardo’s position in the European land systems market, integrating electronics and vehicle platforms into a unified capability,” said a Leonardo spokesperson.
Iveco Defence Financial and Industrial Footprint
Based in Bolzano, Iveco Defence reported revenues of €1.133 billion in 2024 with an EBIT of €108 million. The company operates five production facilities in Germany, Romania, and Brazil, employing around 2,000 people. It also maintains nine commercial offices and six R&D centres across Europe and South America.
Leonardo noted that tighter integration of electronics into next-generation vehicles is a key goal of the acquisition. Opportunities for deeper collaboration with Rheinmetall, particularly in heavy vehicle programmes, are also under review.
European Defence Industry Consolidation
This deal reflects a broader trend within the European defence sector. Leading manufacturers are expanding production lines and consolidating capabilities to meet rising demand for modern land systems. The war in Ukraine and NATO’s focus on enhancing force posture have driven significant investments in armoured vehicle fleets and support platforms.
With the acquisition of Iveco Defence, Leonardo is positioning itself to become a central player in European armoured vehicle production, offering fully integrated, digitally enhanced solutions for allied forces.
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