Leonardo to acquire Iveco Group’s defence business for EUR 1.7 billion

Leonardo announced on 30 July 2025 that it has signed an agreement to acquire the Iveco Group’s Defence division for a total enterprise value of EUR 1.7 billion, with the transaction financed through available cash resources.

Iveco Group’s Defence business includes both Iveco Defence Vehicles (IDV), which produces special-purpose protected vehicles, and Astra, which produces heavy-duty trucks for extreme off-road conditions.

“This strategic acquisition marks a significant step in Leonardo’s plan to strengthen its role as a leading, fully integrated original equipment manufacturer (OEM) in the land defence domain,” Leonardo stated. “The acquisition further enhances the group’s comprehensive portfolio of solutions for defence and security, covering both tracked and wheeled platforms.”

The acquisition will also boost joint commercial positioning, leveraging the complementary nature of the two companies’ sales networks and the ability to offer integrated solutions in high-potential markets.

“The acquisition of Iveco Defence represents a key milestone in the execution of our inorganic growth strategy and supports the full implementation of our Industrial Plan,” Leonardo CEO and General Manager Roberto Cingolani was quoted as saying in a Leonardo press release. “This transaction reinforces Leonardo’s position as a reference player in the European land defence market: a segment expected to experience sustained growth in the coming years.”

The closing of the transaction is expected in the first quarter of 2026, subject to regulatory approvals.

The integration of Leonardo’s electronic systems – including a complete suite of combat electronics sensors and next-generation turrets – with Iveco’s range of military vehicles “will ensure the utmost effectiveness of the proposed operational solutions”, stated Leonardo adding that the highly specialised know-how in the two companies’ respective verticals, combined with robust logistics and manufacturing capabilities, “will drive greater operational efficiency and accelerate joint technological development, while also creating new opportunities for professional skill development and talent enhancement”.

Leonardo, in collaboration with its partner Rheinmetall, will also evaluate potential opportunities in the heavy vehicle sector in relation to the Iveco acquisition. The two companies announced the creation of Leonardo Rheinmetall Military Vehicles (LRMV) in October 2024, although this joint venture is primarily focused on heavy tracked armoured vehicles.