Leonardo has purchased Iveco Defence Vehicles (Idv), the military vehicle division of the group controlled by Exor (the holding company of John Elkann that also owns Stellantis, Cnh Industrial, and the Gedi publishing group).
On March 18, the Italian defense and aerospace giant announced that it had finalized the acquisition of Iveco Group’s defense business, including the Idv and Astra brands, for a price of 1.6 billion, “in line with the enterprise value set at 1.7 billion, net of agreed contractual adjustments.” “With the closing of the operation, Leonardo takes a further step to consolidate its leading position in the land defense sector and strengthens its role as an integrated OEM (Original Equipment Manufacturer), with a portfolio of complete solutions for defense and security, on tracked and wheeled platforms,” states the note from the group led by Roberto Cingolani.
The operation was one of the conditions for completing the voluntary public takeover bid by Tata Motors on all Iveco Group ordinary shares (excluding the separation of the Defense Business), as announced on July 30, 2025.
Last July, Leonardo had indeed signed the agreement to acquire Iveco Defence, a division of Iveco Group, for a consideration of 1.7 billion euros (enterprise value), financed with available cash. The sale of the defense division to Leonardo satisfied both the Italian government’s requests to keep the strategic activity in the country and the unions.
And it is precisely these latter who are already looking to the next step: “the conclusion of this operation opens the way to the next step concerning Iveco’s civil sector related to the acquisition by Tata Motors,” reads the joint statement from Fiom-Cgil released yesterday.
All the details.
ACQUISITION OF IDV BY LEONARDO COMPLETED
Iveco has sold the Defense Business to Leonardo, according to the terms of the agreement announced on July 30, 2025. Against an enterprise value of 1.7 billion euros (as communicated in July 2025), the sale price amounts to 1.6 billion euros.
The operation, which includes the Idv and Astra brands, “also enhances the joint commercial positioning, thanks to the complementarity of sales networks and the possibility to offer integrated solutions in specific high-potential markets,” explains the ex-Finmeccanica group.
IDV FIGURES
Thus, Leonardo acquired 100% of the share capital of IDV Group srl for 1.6 billion euros. Iveco Group had separated the Defense business (Idv and Astra brands) and reorganized it under a single Italian holding, Idv Group srl.
In 2025, the Defense business generated revenues of 1.3 billion euros. The company operates 6 production sites (with presence in Germany, Romania, and Brazil) and employs about 2,000 people, with 9 commercial offices in Europe, the United States, and Brazil, and 6 research and development centers in Italy, Brazil, the UK, and Germany. Idv specializes in the design, production, and logistical support of vehicles primarily for military use, with a product portfolio covering light and medium armored vehicles, heavy armored vehicles, and logistical and tactical vehicles.
THE STRATEGY OF THE ITALIAN DEFENSE AND AEROSPACE GIANT
“The acquisition strengthens us as a key player in the land Defense sector and makes us even more competitive in a market segment characterized by significant future growth prospects,” commented Leonardo’s CEO and General Manager, Roberto Cingolani, emphasizing that “Thanks to the operation, Leonardo adds industrial expertise to produce integrated platforms, both in mobility and payload, and takes a further step in the inorganic growth strategy, one of the directions in the development of the Industrial Plan.”
DIVIDEND COMING FOR IVECO SHAREHOLDERS
For its part, Iveco informs that “as planned, the net proceeds from the sale will be distributed to the company’s shareholders through an extraordinary dividend. Considering the price received, expected closing adjustments, and separation costs incurred for the spin-off of the Defense Business, the dividend (initially estimated at 5.5-6 euros per share) is currently expected to be 5.7-5.8 euros for each issued and outstanding ordinary share.”
The exact amount of the distribution will be determined in due course by the board of directors, the note specifies. Payment is expected to take place on April 20, in line with the standard ex-dividend date scheduled by the Italian Stock Exchange calendar. On March 26, the extraordinary shareholders’ meeting will discuss the distribution of the extraordinary dividend, which will be determined by board resolution.
THE POSITION OF THE UNIONS
“The acquisition of Iveco’s Defense business, including the Idv and Astra brands, by Leonardo has been completed. Any subsequent operations within the prerogatives of the joint venture between Leonardo and Rheinmetall” will be “examined in the coming months also considering the limits imposed by antitrust regulations,” declared in a joint statement Samuele Lodi, national secretary of Fiom-Cgil and mobility sector head, Simone Marinelli, national aerospace coordinator for Fiom-Cgil, and Ciro D’Alessio, national automotive coordinator for Fiom-Cgil.
The reference is to Rheinmetall, which would like to acquire Iveco Defence’s truck activities. The German defense giant and Leonardo have launched a 50/50 joint venture for the supply of military vehicles to the Italian army, a program in which Iveco Defence Vehicles is also involved with a share of the work, in light of the large order received from the Italian government to produce military vehicles, in which Idv will participate with a 12-15% share. At the time of the announcement of the sale of Idv last July, Leonardo specified that it would verify together with partner Rheinmetall the opportunity to enhance the perimeter of heavy vehicles.
TRUCKS TO RHEINMETALL?
“We have reached a verbal agreement whereby Rheinmetall will acquire the trucks and tactical vehicles and, if Leonardo gives the green light, we will quickly discuss these aspects with the Leonardo team. We are working on our due diligence in this area,” Rheinmetall CEO Armin Papperger said on March 11 regarding the sale of Iveco Defence Vehicles to Leonardo. According to Leonardo CEO Cingolani, the Italian group has granted Rheinmetall exclusivity until the first half of 2026 for the purchase of the truck activities.
According to an expert who asked to remain anonymous, beyond other aspects, a possible acquisition of Idv Trucks by Rheinmetall could raise issues related to European and German antitrust, as it would lead to the merger of two main suppliers in the military vehicle sector according to a German-style integration model. The expert also recalls that the German antitrust authority had authorized the joint venture between Rheinmetall and Leonardo limited to the Italian tank project, justifying the decision by the fact that the Piazza Monte Grappa group was the only partner. In this context, a reaction could therefore be expected from the countries where Idv is present with its own legal entities, which could resort to their respective national regulations, the expert notes to Startmag.
FOCUS ON TATA MOTORS FOR FIOM-CGIL
Finally, the Fiom-Cgil unions specify that “with the acquisition phase of Idv by Leonardo completed,” “discussions will begin for the application of the metalworkers’ national collective labor agreement and the related contractual harmonization.
“The important factor is, however, the guarantees of continuation and development of activities at all plants. The conclusion of this operation opens the way to the next step concerning Iveco’s civil sector related to the acquisition by Tata Motors. Now there are no longer formal impediments to starting discussions with the Indian multinational to explore intentions for the perspective of the group’s Italian plants. The industrial plan must involve the union and must be aimed at the highest guarantees in terms of production, innovation, and employment stability. The Government must guarantee this by convening the parties and, as we have long requested, without excluding even direct State participation,” concludes the Fiom-Cgil note.
