Leonardo Acquires Iveco Group’s Defence Business for €1.7 Billion
Leonardo announced that it will acquire Iveco Group’s entire defense division for €1.7 billion, including the Iveco Defence Vehicles (IDV) unit and its heavy-truck ASTRA brand. Financed with Leonardo’s cash reserves, the deal extends Leonardo’s strategy to become a fully integrated supplier of land systems. Company executives note this move consolidates a slice of Italy’s defense industry at a time when European governments are sharply increasing military budgets. Leonardo will now offer both infantry fighting vehicles and logistics trucks, strengthening its product lineup.
The agreement covers IDV’s operations and the ASTRA heavy-truck business. IDV reported €1.133 billion in revenue in 2024 and employs about 2,000 people across five factories in Europe and Brazil. Both companies state that they will collaborate with Italian and EU regulators before finalizing the transfer of ownership. The sale is expected to close by the first quarter of 2026, subject to customary antitrust and regulatory approvals.
Leonardo’s management says the deal fits its “industrial plan” for growth. The merged group can offer integrated combat solutions by combining Leonardo’s electronics, sensors, and turret systems with IDV’s vehicles. The enlarged Leonardo will serve current customers worldwide (IDV already sells armored vehicles to the Italian Army, Brazil, and others) and position itself better for export markets. This move complements Leonardo’s existing partnership with Germany’s Rheinmetall. They plan to explore heavy-wheeled truck projects together and are building new tanks and IFVs for Italy.
With NATO countries increasing their defense budgets, demand for armored trucks and IFVs is growing, and consolidation is viewed as a strategy for European companies to compete globally. Even Rheinmetall is in talks with Leonardo to acquire part of IDV’s military-truck business. Altogether, the deal pushes towards a more integrated European defense industry, helping Italy retain a national supplier while scaling up production.
In statements after the announcement, Leonardo highlighted that the acquisition gives it a “unique possibility to offer both tracked and wheeled platforms”. Olof Persson (Iveco’s CEO) said the sale will give IDV a new scale and investment to innovate as part of Leonardo. Both companies see this as a win: Leonardo gains a fuller product line and market reach, while Iveco’s defense engineers join a larger group with “the scale and integrated capabilities to compete on all levels”. If regulators approve the deal by early 2026, it will significantly reshape the European land-vehicle industry and help meet the growing demand for modern armored vehicles.