Leonardo Closes €1.6 Billion Acquisition of Iveco's Defense Division
On March 18, 2026, Italian aerospace and defense firm Leonardo S.p.A. finalized its acquisition of Iveco Group's defense business for a sale price of €1.6 billion ($1.96 billion). The deal, based on a total enterprise value of €1.7 billion, transfers ownership of the IDV and ASTRA military vehicle brands to Leonardo. This move follows regulatory clearance from the European Commission on March 17 and aims to create a European land defense champion with the scale to compete globally.
Iveco to Issue Special Dividend Up to €5.8 Per Share
As a result of the sale, Iveco Group intends to distribute the net proceeds to its shareholders via an extraordinary interim dividend. The company currently estimates the payout will be between €5.7 and €5.8 per share. The board of directors will determine the final amount, with an expected ex-dividend date of April 20, 2026, and payment occurring the same month. This divestiture, which removes a business unit with a book value of €313 million as of December 31, 2025, is also a critical precondition for the completion of a separate voluntary tender offer by Tata Motors Limited for Iveco's remaining automotive operations.
Deal Aligns With NATO's Push for Industry Consolidation
This major consolidation within the Italian defense industry aligns with a broader strategic push by NATO for a more robust European defense industrial base. Just days before, on March 12, NATO Secretary General Mark Rutte called for increased production and cooperation. He noted that allies are committed to raising defense spending to 5% of their GDP by 2035. The formation of a larger, more integrated entity through the Leonardo-Iveco transaction positions the new powerhouse to better address these growing security demands and compete for significant international contracts.