Leonardo has completed the acquisition of the defence business of Iveco Group in a transaction valued at €1.7 billion, bringing the military vehicle activities of Iveco Defence Vehicles under the control of the Italian defence and aerospace group.
Announced in Rome on 18 March, the deal is intended to strengthen Leonardo’s position in the European land defence sector and expand its ability to offer integrated defence solutions combining platforms, sensors, communications systems and mission electronics.
Leonardo said integrating Iveco Defence Vehicles would allow the group to combine its advanced defence electronics, radar and mission systems with the Italian manufacturer’s expertise in protected mobility platforms, armoured vehicles and military logistics trucks.
Iveco Defence Vehicles is best known for a family of protected tactical vehicles and military trucks widely used by European and international armed forces. Its portfolio includes the LMV (Light Multirole Vehicle), known in Italian service as the Lince, as well as a range of tactical and logistical truck platforms designed for expeditionary operations and high-mobility military transport.
By bringing these capabilities into its structure, Leonardo aims to strengthen its position in the land domain while linking vehicle platforms with the company’s established strengths in digital architecture, command-and-control systems and advanced sensor technologies.
The acquisition reflects a broader shift underway across Europe’s defence industrial landscape. As defence spending rises across the continent following Russia’s war in Ukraine, governments are launching large procurement programmes covering air defence, armoured vehicles, ammunition production and next-generation combat systems.
These programmes increasingly require prime contractors capable of integrating multiple technologies across different domains. As a result, defence companies across Europe have begun expanding their industrial scale through mergers, acquisitions and joint ventures.
Recent examples include the creation of KNDS through the merger of Nexter and KMW, the rapid expansion of Rheinmetall across European land systems programmes and Leonardo’s growing role in multinational initiatives such as the Global Combat Air Programme.
Governments are also encouraging stronger industrial groupings to ensure that European companies can support large defence programmes while maintaining technological sovereignty and competitive export capabilities.
Within this environment, Leonardo’s €1.7 billion acquisition of Iveco’s defence business illustrates how European defence firms are expanding their portfolios and industrial scale in preparation for a new cycle of large multinational procurement programmes.
Author: Özgür Ekşi
