Leonardo S.p.A. has signed a binding agreement to buy Iveco Defence Vehicles (IDV) from Iveco Group for an enterprise value of EUR1.7 billion ($1.96 billion), a move the Italian aerospace conglomerate says will transform it into a land‑systems prime. The all‑cash deal is due to close in the first quarter of 2026 once EU antitrust authorities and the Italian government have finished their reviews under Rome’s “golden power” rules, which give the government veto rights over deals involving strategic assets.
By taking over IDV Leonardo gains control of every major armored‑vehicle line currently in production for the Italian Army—and several lucrative export franchises. Chief among them is the Centauro II wheeled tank destroyer. The last batch of 28 vehicles that completed Italy’s 150‑unit requirement was ordered in June 2024, and full‑rate production is now underway at Bolzano.
Leonardo already provides the 120 mm turret, fire‑control electronics and optronics for Centauro II; owning the chassis business eliminates the Iveco – Oto Melara Consortium (CIO) joint‑venture layer and lets the company present a single prime bid for future competitions.
The acquisition also folds the VBM Freccia “PLUS” infantry fighting vehicle into Leonardo’s catalogue. Seventy‑six upgraded Freccias—60 in the combat configuration and 16 anti‑tank variants—were ordered in December 2024 under Phase 2 of the Italian Medium Armoured Vehicle programme, complete with long‑term integrated logistics support.
On the heavy‑armor side, Leonardo will inherit responsibility for the Ariete C2 main‑battle‑tank life‑extension. Deliveries of the first of 90 upgraded vehicles began in mid‑July after the CIO handed over the lead tank in Rome.
Looking further ahead, Rome’s plan to field a next‑generation main battle tank and a tracked infantry fighting vehicle through the Leonardo‑Rheinmetall Military Vehicles joint venture will benefit from in‑house automotive know‑how once IDV’s engineers come aboard. Leonardo’s July 2024 strategic partnership agreement with Rheinmetall envisages final assembly and up to 60 percent of program value being booked in Italy.
The deal is not limited to Italian contracts. IDV supplies the US‑designed but Italian‑engineered SuperAV 8×8 hull used for the US Marine Corps’ Amphibious Combat Vehicle (ACV). Washington plans to buy up to 632 ACVs across four variants, with negotiations underway for Lots 5 and 6 and more than 180 vehicles already delivered. Spain has also selected the platform for its marine corps, opening another European production line.
In the light‑vehicle segment, Leonardo acquires the LMV/LMV 2 “Lince” family, whose 4,000‑plus units are in service with 15 nations, and the newer LMV‑BR 2 now entering a 420‑vehicle production run for Brazil. It also gains the MTV “Manticore” 12‑kN protected truck, an order of 1,185 vehicles that is replacing a swathe of Dutch Army utility platforms through 2027.
At the logistics end, Leonardo inherits two long‑term revenue streams. The Netherlands signed a EUR785‑vehicle framework in May for new 8×8, 6×4 and hook‑lift trucks, while the Italian Army inked a EUR755 million deal last December covering 1,453 tactical‑logistic trucks to be delivered through 2038.
Leonardo’s management argues that merging IDV’s chassis expertise with its own sensors, radios and remotely operated turrets will unlock faster product development and cheaper bids. The company highlighted the “complementary nature” of the two businesses and promised deeper integration of combat electronics across the vehicle range as a first deliverable.
With final approval expected early next year, Leonardo will soon control the entire industrial base that equips Italy’s land forces—from 4×4 patrol trucks up to main battle tanks. While it may not yet match the scale of Rheinmetall or the global reach of BAE Systems, Leonardo’s new size puts it in a strong position to ride the surge in European defense spending prompted by Russia’s war on Ukraine.
A military history enthusiast, Richard began at Forecast International as editor of the World Weapons Weekly newsletter. As the Internet grew in importance as a research tool, he helped design the company's Forecast Intelligence Center and currently coordinates the EMarket Alert newsletters for clients. Richard also manages social media efforts, including two new blogs: Defense & Security Monitor, covering defense systems and international issues, and Flight Plan, which focuses on commercial aviation and space systems. For over 30 years, Richard has authored the Defense & Aerospace Companies, Volume I (North America) and Volume II (International) services. The two books provide detailed data on major aerospace and defense contractors. He also edits the International Contractors service, a database that tracks all the contractors involved in the programs covered in the FI library. More recently he was appointed Manager, Information Services Group (ISG), a new unit that encompasses developing outbound content for both Forecast International and Military Periscope.
