Leonardo, the Italian defense giant, is considering the acquisition of Iveco Defence Vehicles (Idv), according to sources close to the negotiation.
Idv, which specializes in the production of armored vehicles, tanks, and other combat vehicles, would represent an opportunity for Leonardo to increase its production capacity and strengthen European alliances in the defense sector.
The 2 companies have a long history of industrial collaboration, thanks to the partnership between Idv and Oto Melara, a Leonardo subsidiary specialized in the production of cannons.
With the acquisition of Idv, the strategy of Leonardo’s Ceo, Roberto Cingolani, who aims at consolidating the fragmented European defense market, becomes more effective.
Analysts estimate the value of Idv to be around 750 million euros, but some speculate a higher valuation considering the multiples of other companies in the sector.
Leonardo, after raising funds through the sale of shares of its subsidiary Drs on Nasdaq and the sale of torpedoes Wass to Fincantieri, will have to carefully evaluate how far to go in the offer.
The outcome of the operation will also depend on the willingness of Exor, the Agnelli-Elkann family holding that controls Iveco. The presence of Alessandro Nasi, a representative of Exor, as the president of Idv could play a key role in the negotiations.
So, the acquisition of Iveco Defence Vehicles by Leonardo could represent a significant step towards the consolidation of the European Defense Industry, strengthening the position of the Italian group as a reference player in the sector. (Redazione)
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