Leonardo – Rheinmetall, Major Agreement for Military Equipment Production
A joint venture between an Italian and a German company has received approval from the German competition authority
The German Antitrust Authority (Bundeskartellamt) has approved a joint venture between Rheinmetall and Leonardo, two major European players in the defense sector (German and Italian). The new company will be called Leonardo Rheinmetall Military Vehicles and will be headquartered in Rome with an operational office in La Spezia.
The companies have already announced a joint venture in October 2024 with the aim “to form a new European nucleus for the development and production of combat vehicles in Europe.” The companies have already signed a corresponding Memorandum of Understanding in early July 2024.
Antitrust President Andreas Mundt explained: “Given the current geopolitical situation, there are significant changes in the defense industry. The establishment of the joint venture did not cause any competition problems and could be approved quickly. The activities of Rheinmetall and Leonardo are complementary; there is no significant overlap in their current business activities.”
At least 60% of value-added work must be performed in Italy. “While Leonardo will contribute mainly in the form of defense electronics, Rheinmetall, which already has subsidiaries in Italy, will contribute mainly in the form of its existing platforms for the Panther main battle tank and the Lynx infantry fighting vehicle,” the German Antitrust further explained.