The German Federal Cartel Office (Bundeskartellamt) has approved the formation of a joint venture between Germany’s defense systems producer Rheinmetall AG and Leonardo S.p.A., an Italian aerospace and defense company.
The new entity, Leonardo Rheinmetall Military Vehicles (LRMV), is equally owned and will be headquartered in Rome, Italy. The deal’s consummation follows an October 2024 agreement to establish the joint venture in Rome.
The LRMV deal came about following the collapse of talks between Leonardo and the military vehicle consortium KNDS to form an alliance.
Launched in December 2023, the discussions between Leonardo and KNDS aimed to create a powerful European defense venture. This partnership sought to unify the European defense industry, particularly in land systems, to better compete with U.S. rivals. However, negotiations faltered due to disagreements on crucial aspects, including technology transfer and the level of Italian participation in key programs.
Later that month, Leonardo signed a Memorandum of Understanding (MoU) with Rheinmetall, a key competitor of KNDS, to establish a 50/50 joint venture focused on developing cutting-edge land defense systems.) with KNDS rival Rheinmetall to establish a new 50:50 joint venture aimed at developing next generation land defense systems.
The primary objectives of the LRMV joint venture between Leonardo and Rheinmetall are the industrial development and subsequent marketing of the new Italian Main Battle Tank (MBT) and the new Lynx platform for the Armoured Infantry Combat System (AICS) program as part of the Italian Army’s land systems program. The Panther KF51, developed by Rheinmetall, will serve as the foundation for the new MBT, which is intended to replace the Ariete in the Italian Army. The Italian AICS program aims to procure over 1,000 armored combat systems, with Rheinmetall’s Lynx infantry fighting vehicle forming the technological basis for these systems. Furthermore, the joint venture plans to develop and produce other vehicles within this family, such as recovery, engineer, and bridge-laying vehicles.
A military history enthusiast, Richard began his career at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet became central to defense research, he helped design the company’s Forecast Intelligence Center and now coordinates the FI Market Recap newsletters for clients. He also manages two blogs: Defense & Security Monitor, which covers defense systems and international security issues, and Flight Plan, focused on commercial aviation and space systems.
For more than 30 years, Richard has authored Defense & Aerospace Companies, Volume I (North America) and Volume II (International), providing detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database tracking all companies involved in programs covered by the FI library. Richard currently serves as Manager of the Information Services Group (ISG), which develops outbound content for both Forecast International and Military Periscope.
