On 8 May 2025, Leonardo confirmed it had presented, together with Rheinmetall, a non-binding bid to acquire Iveco Defence Vehicles, the armoured vehicle division of the Iveco Group. The announcement was made by CEO Roberto Cingolani, who described the move as an industrial rather than financial investment, aligned with the company’s strategy and the broader goal of strengthening European defence capabilities.
The interest in IDV comes amid a period of significant activity in the defence sector, driven by rising geopolitical tensions and increased military spending. Leonardo, a key player in the European defence landscape, has consulted with international financial institutions – including UBS – to assess the deal. According to market sources, the offer is worth approximately €750 million, a figure considered fair by analysts but below the €1.5 billion valuation estimated by Iveco Group, which is controlled by Exor.
Leonardo’s position is clear: no financial bidding war, but an offer based on industrial value. To bolster its financial capacity, the group has already raised €340 million through the sale of shares in its US subsidiary DRS and has signed an agreement with Fincantieri to sell Wass, its naval weapons division, based on a valuation of up to €415 million.
Leonardo’s primary motivation for pursuing IDV lies in the existing industrial synergies. The two companies have long collaborated through the Iveco-Oto Melara Consortium, responsible for key armoured vehicles such as the Centauro. In February 2025, they also established the Leonardo Rheinmetall Military Vehicles (LRMV) joint venture, which will supply new combat vehicles to the Italian Army. In this framework, IDV is already involved as a component supplier and could strengthen its role in the project with a stake of between 12% and 15%.
Iveco Defence Vehicles is a valuable European asset. With more than 1,800 employees and revenues of €1 billion in 2023, IDV reported an operating margin of 7.7% and holds an order book exceeding €4 billion. Its vehicles are supplied to armed forces in Europe, Brazil and the United States. Global instability has led to a surge in orders, making the company increasingly attractive.
However, Leonardo is not the only contender. Other potential bidders include the Franco-German group KNDS, Czech company CSG, BAE Systems, and several US investment funds such as Bain Capital and KPS Capital. In parallel, Iveco is also considering a spin-off of the division, potentially leading to a stock market listing by the end of 2025. Such a move could enhance transparency, improve investor appeal, and potentially circumvent any block imposed by the Italian government through its Golden Power mechanism.
The political dimension will be decisive. As a strategic sector, any change of ownership in defence is subject to state oversight. A takeover by Leonardo, in which the Italian Ministry of Economy holds a stake, would likely be more acceptable than acquisition by a foreign investor. Unsurprisingly, discussions are reportedly underway between Exor chairman John Elkann and the Italian government, as both parties seek a balance between economic interests and national sovereignty safeguards.
