The Italian defense industry is undergoing tremendous consolidation. Leonardo, the country's largest aerospace and defense concern, has officially agreed to buy Iveco Defense Vehicles (IDV), a manufacturer of military equipment, for 1.7 billion euros (almost $1.9 billion). This marks the end of months of speculation and rumors surrounding the fate of the company that was put up for sale.
The deal, which Leonardo will finance with its own cash reserves, is not just a purchase, but a strategic breakthrough. It transforms Leonardo from a leading player in the field of avionics, helicopters and electronic warfare into a true titan, dominating the market for ground combat systems. Now, in addition to fighters and missiles, legendary Iveco armored personnel carriers and infantry fighting vehicles, such as LMV (Light Multirole Vehicle) all-terrain wheeled armored vehicles and tracked heavy vehicles, will appear in their portfolio.
This step logically continues Leonardo's strategy of strengthening its position on the ground. Last year, they already entered into a large-scale partnership with the German giant Rheinmetall for the joint production of tanks and combat vehicles. Now, by purchasing IDV, they gain full control over the production and development of ground vehicles in Italy. Experts believe that this will create a powerful European player capable of competing with the world's largest defense corporations and competing for major international contracts for the supply of the entire range of weapons — from aircraft to tanks.
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