War for the Future of Italian Defence: Indra Challenges Leonardo and Rheinmetall for Iveco Defence
Iveco's defence vehicle division (Iveco Defence), with revenues of €1.1 billion in 2024, is experiencing a period of great turmoil. The sale of Iveco Defence Vehicles (Idv) has attracted a range of interest from European groups, prompting the company to evaluate non-binding offers from numerous competitors, including Spanish giant Indra. However, competition is strong and the match to acquire Idv promises to be complex, with the strategic interest of the Italian government also at stake.
Iveco Defence: the Indra factor and other contenders
Indra, a Spanish company already active in the defence sector and supplier to the Ministry of Defence in Madrid, has recently taken a step forward in the competition, intent on expanding its presence in the European defence market. This is not the first time the Spanish group has approached an Italian company, as demonstrated by its previous interest in cybersecurity company Cy4Gate. According to sources close to the affair, Indra is ready to put a significant proposal on the table, but will face stiff competition from others.
Also in the running are Knds (Krauss-Maffei Wegmann and Nexter), a leader in the tank sector, the Czech company Csg, owner of Brescia-based Armi Perazzi, and above all the German-Italian Leonardo-Rheinmetall consortium. The latter represents one of the most relevant offers, considering Iveco's involvement in the supply of strategic components for the armoured vehicles produced by the industrial pair.
The price issue and Golden Power intervention
One of the key factors in the sale of Iveco Defence Vehicles will be the price. Iveco has set a target valuation of at least EUR 1.5 billion, but some bids approach or exceed this threshold. Competing companies, such as Knds and Csg, would be willing to go as high as 2 billion, while Leonardo-Rheinmetall seem to be leaning towards a lower figure, hovering around 800 million, but with the possibility of reaching up to 1 billion.
However, the final decision will not depend only on the price. The Italian government could intervene through the so-called 'golden power', a protective instrument that allows the state to block operations deemed harmful to national security. This could favour the offer of the Leonardo-Rheinmetall consortium, which represents an important initiative for the renewal of Italy's fleet of armoured vehicles and tanks.
Strategic implications for the Italian defence industry
The acquisition of Iveco Defence Vehicles will have a significant impact on the European defence landscape, with a particular focus on Italy, where the company is a strategic supplier to the Armed Forces. The sale is not just about a billion-dollar business, but a geopolitical and industrial game that could determine Italy's position in the European defence context. Leonardo, with Rheinmetall's support, could find itself playing a crucial role in the modernisation of Italy's armoured vehicles, also helping to strengthen Italy's position in European industrial cooperation.
The race to acquire Iveco Defence Vehicles is becoming increasingly intense. With Indra's entry into the competition and the strong presence of Leonardo-Rheinmetall, the sale of this division could mark a decisive moment for the Italian and European defence industry. However, the presence of golden power and strategic evaluations could still determine the final outcome, bringing into play not only economic interests, but also crucial political and industrial choices for the future of national defence.
Born Alessandro Generotti, C.le Maj. Parachutist on leave. Military Parachutist Patent no. 192806. 186th RGT Par. Folgore/5th BTG. Par. El Alamein/XIII Cp. Par. Condor.
Founder and administrator of the website BRIGATAFOLGORE.NET. Blogger and computer scientist by profession.
