Leonardo has reached an agreement to acquire Iveco Defence, the military division of the Iveco Group, in a transaction valued at €1.7 billion. The deal, which is expected to close in the first quarter of 2026 pending regulatory approvals, will be financed through Leonardo’s existing cash reserves.
With this acquisition, Leonardo expands its footprint in the European land defence sector. Iveco Defence, which specializes in wheeled military vehicles, will be integrated into Leonardo’s broader portfolio, which includes tracked and wheeled platforms as well as electronic systems.
According to the company, the move is part of its long-term industrial plan to become a more comprehensive land systems provider. It is expected to bring operational efficiencies through the integration of technologies such as sensors and turret systems onto Iveco’s vehicle platforms.
Leonardo and its strategic partner Rheinmetall are also expected to explore future opportunities in the heavy vehicle segment following the acquisition.
The transaction will also combine the two companies’ commercial networks, aiming to strengthen market access and open new opportunities for joint development across key markets.
Morgan Stanley & Co. International Plc is serving as financial advisor to Leonardo, while Bonelli Erede is providing legal counsel.