Iveco has decided to divest its Defence Vehicles division, which specialises in the development and production of military vehicles. Three contenders are said to have submitted their bids. In a report published by Bloomberg on 10 July 2025, Leonardo, backed by Germany’s Rheinmetall, is said to have offered 1.6 billion euros, while both KNDS and Czechoslovak Group reportedly tabled bids of 1.9 billion euros. Despite the lower valuation, Bloomberg indicates that Leonardo’s offer is favoured, primarily due to its alignment with the Italian government’s desire to retain national oversight. The Ministry of Economy holds roughly a 30 per cent stake in Leonardo.
This gives the government the leverage of its golden power, and it is unlikely that Iveco would go against its position. Bloomberg further notes that Leonardo itself is not particularly enthusiastic about the acquisition, preferring instead to invest in defence technologies. However, aware of its “home advantage”, the company has adjusted its proposal to make it “fair”, without pushing too aggressively.
KNDS, a joint venture between France’s Nexter and Germany’s Krauss-Maffei Wegmann, is regarded as one of Europe’s most prominent armoured vehicle manufacturers. However, Bloomberg reports that internal divisions within the group—between the French side, which supports the deal, and the more cautious German side—could complicate its bid. Concerns reportedly centre on the potential impact on corporate balance and on a future stock market listing.
Czechoslovak Group, led by Czech billionaire Michal Strnad, is highly active in defence sector acquisitions. Just last year, the group acquired a segment of the US-based Vista Outdoor for over two billion dollars, adding well-known brands such as Remington and Federal to its portfolio.
