Edge Group, the defense giant of the United Arab Emirates, will acquire a controlling stake in Costruzioni Motori Diesel (Cmd), an Italian company with over 35 years of experience in engine manufacturing and today a prominent international player in integrated advanced propulsion systems.
The Emirati group has signed an agreement to acquire an 80% stake in the Lucanian company, as part of the state conglomerate’s European expansion strategy, Reuters reported yesterday Reuters.
“The agreement represents a multiplier of opportunities for the Italian company which has always chosen to remain in Basilicata, where it was founded in 1989, constantly investing in research and development and innovation, so much so that it has earned a solid international reputation for technical precision, innovation, and uncompromising quality standards, to the point of attracting the attention of Edge Group, which with this strategic move aims to expand its presence in advanced engineering, Industry 4.0, and energy solutions,” explains the statement from the Lucanian company.
Founded in 2019, Edge is owned by the Abu Dhabi government and boasts several partnerships and joint ventures, including one with the Italian naval group Fincantieri, while last year it announced the creation of a joint venture with the defense group Leonardo.
The completion of the transaction with Cmd remains subject to the satisfaction of the usual conditions for closing and obtaining the necessary regulatory and governmental approvals, expected by the end of the year.
All the details.
EDGE GROUP WILL ACQUIRE CMD
The largest defense conglomerate of the United Arab Emirates will acquire a controlling stake in the Italian engine manufacturer Cmd. “Among the objectives: to create an integrated platform capable of developing competitive “export-ready” products for automotive, aeronautical, and marine sectors, with high-quality production based in Europe, while contributing to continuous global growth and technological progress,” reads the Cmd statement.
For the latter, this “immediately entails: increased capital investments and access to new regional and international markets; and prospectively: expansion of production capacity, further acceleration of research and development activities, and advancement of positioning both in conventional propulsion systems and next-generation ones (the company is already strongly focused on hybrid propulsion systems).”
TERMS OF THE AGREEMENT
Until the completion of the transaction, Cmd will continue to operate as an independent company under the leadership of its current management team, ensuring full continuity for customers, suppliers, and employees. Should all conditions be met, Edge and the current shareholders of Cmd, who will continue to invest in the company with a significant minority stake and hold key managerial roles, will jointly define a detailed integration plan aimed at maximizing industrial synergies, safeguarding critical know-how, and accelerating the implementation of a complete propulsion offering in the aeronautical, automotive, and maritime segments, the statement further explains.
WHAT CMD IS AND WHAT IT DOES
Cmd designs and develops propulsion systems for the automotive, nautical, and aeronautical sectors. The company has a plant in Atella, Basilicata, a headquarters and R&D center in Caserta, and employs about 220 people.
Specifically, Cmd operates in the engineering, production, and marketing services market for engines through the following Business Units: BU Machining: historically the company’s core business, mainly supported by successes in the Industrial and Automotive sectors; BU Marine Engines: develops and manufactures engines for the marine sector distributed under the FNM brand; BU Avio: conducts research and development in the general aviation sector by carrying out feasibility studies of new products and/or production processes, creating aviation prototypes and complete engines; and BU Energy: the company’s development in the energy sector, where over time it has expressed its potential by combining ideas, engine know-how, and great flexibility in adapting its knowledge to emerging needs, creating a truly broad market perspective.
OWNERSHIP
The shares are divided between cousins Mariano Negri (75%) and Giorgio Negri (25%). After the exit of the Chinese Loncin from the shareholder structure last December, the share capital was increased to about 26 million euros.
GOVERNANCE
The board of directors chaired by Mariano Negri (CEO) is composed as follows: Gianfranco Negri, Ludovica Negri, Corrado Negri, and Giorgio Negri.
THE FIGURES
Cmd closed the 2024 fiscal year with a profit of 2.3 million euros, up from 430 thousand euros the previous year. As of December 31, 2024, the production value amounts to 49 million euros. Costs stand at 42 million euros, an improvement compared to 49 million in 2023.
THE STRATEGY OF THE EMIRATI GIANT
Now, as mentioned, the Lucanian Cmd will come under the control of the Emirati Edge Group.
“With the signing of this agreement, we are taking an important step in building a highly efficient European propulsion hub that will integrate and strengthen Edge’s global industrial presence. Thanks to Cmd’s proven expertise in piston engines and advanced propulsion technologies, we will accelerate the development of competitive, export-ready products that meet the most demanding requirements of our customers in the aeronautical, automotive, and marine sectors,” commented Hamad Al Marar, Managing Director and CEO of Edge.
For his part, Mariano Negri, CEO of Cmd Group, stated: “Joining forces with Edge represents a powerful industrial opportunity for Cmd, our employees, and our partners. With Edge’s support, we will be able to expand our technologies, broaden our international reach, and further invest in innovation, while maintaining and strengthening our Italian industrial roots and our commitment to quality, reliability, and technological excellence. […] At a time when many Italian companies risk losing value by relocating, it is a source of pride that an international giant chooses to associate its name, together with ours, with the asset of quality produced in Italy.”
