Iveco to Sell Defense Unit to Leonardo in EUR1.7 Billion Deal

Iveco will sell its defense unit to Leonardo in a EUR1.7 billion deal. The transaction is expected to be completed in the coming months. The deal will strengthen Leonardo's position in the defense industry and help Iveco focus on its commercial vehicle business. The sale includes Iveco's subsidiary Oto Melara and its stake in the Eurospacex joint venture.

Iveco Group NV has agreed to sell its defense unit to Leonardo SpA in a deal valued at approximately €1.7 billion. The transaction is expected to be completed in the coming months, according to a statement from Iveco. This sale is part of a broader strategy by Iveco to focus on its commercial vehicle business and will strengthen Leonardo's position in the defense industry.

The acquisition includes Iveco's subsidiary Oto Melara and its stake in the Eurospacex joint venture. Leonardo will pay €1.7 billion, including debt, for the military vehicle business. This deal is part of a larger transaction where the rest of Turin-based Iveco, which makes a range of commercial trucks and buses, is set to be acquired by Tata Motors Ltd for about €3.8 billion [1].

The acquisition by Leonardo will help the company expand its defense capabilities and reinforce its strategic position in the industry. The deal is expected to be completed by the end of the year, according to Leonardo's CEO, Roberto Cingolani. The acquisition of IDV by Leonardo will also provide a significant boost to the company's production capacity, with IDV's three facilities in Italy and one in Germany contributing to the overall output [3].

The sale of Iveco's defense unit to Leonardo is part of a broader trend in the defense industry, where consolidation and strategic partnerships are becoming increasingly important. The acquisition will allow Leonardo to integrate IDV's military truck production capabilities into its existing portfolio, enhancing its multi-domain interoperability strategy.

The sale of Iveco's defense unit to Leonardo is expected to have a positive impact on both companies. For Iveco, the sale will allow it to focus on its core commercial vehicle business and potentially improve its financial performance. For Leonardo, the acquisition will strengthen its position in the defense industry and provide a significant boost to its production capacity.

References:
[1] https://news.bloomberglaw.com/mergers-and-acquisitions/iveco-to-break-up-with-sale-of-italian-company-to-tata-leonardo
[3] https://www.edrmagazine.eu/leonardo-acquires-idv-consolidating-the-italian-land-defence-industry