What will change in the automotive industry if Elkann also sells Iveco?

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Is Exor selling Iveco 's defense division to Leonardo? According to Bloomberg, negotiations are at an advanced stage, sponsored by the Italian government, which has once again invoked the golden power . The Agnelli family holding company, led by John Elkann, had already decided to sell its 27 percent stake (but with voting rights up to 43 percent) and was seeking buyers. For several weeks, rumors have been circulating that Elkann has opened his doors to the Indian Tata family, which also owns Jaguar and Land Rover trucks and buses. Negotiations for the defense sector are underway with Roberto Cingolani, CEO of Leonardo, the defense group. This is a move that reflects Italian excellence, but also represents a significant commitment for Leonardo, whose underlying strategy is to focus on the high-tech sector (from electronics to missiles to drones).

The question, therefore, is whether the acquisition of Iveco would absorb resources that could distract from the primary objective. In fact, defense circles have long been discussing how to address the weaknesses of the ground forces, undoubtedly the most underserved . Just consider the shortage of tanks, even light ones. An agreement was signed a year ago with the German company Rheinmetall to replace the aging Ariete and Dardo with tanks derived from the Panther, but the process is long. Iveco doesn't make tanks, but the acquisition would also address the weakness in trucks, heavy vehicles, and armored vehicles in general. Leonardo has submitted a binding offer of approximately €1.6 billion for IDV, Iveco Defense Vehicles, which together with Rheinmetall has a turnover of €1.1 billion.

A joint venture would be formed to complement the tank venture. Between €20 and €30 billion is at stake to upgrade the entire fleet, and Iveco also has a 15-20 percent share of the order. Possible bidders have included the Czech company CGS and the Franco-German consortium KNDS. Defense Minister Crosetto has stated that Iveco must remain Italian. Minister Urso has called a meeting of the unions for next Thursday.

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