Italy - Iveco Group N.V. (Iveco) registered in Amsterdam, Netherlands, with its headquarters in Turin, Italy, announced on July 30, 2025 it has signed an agreement to sell its Defence Business (IDV and ASTRA brands) to Leonardo S.p.A., a leading European Italian defence and security company, for an enterprise value of EUR1.7 billion. The transaction is expected to create an Italy- based, European manufacturer in the land defence segment with the scale and capabilities also to compete at a global level.

On February 7, 2025, Iveco announced that it would separate its Defence Business from its commercial vehicles business in order to provide both with greater focus and strategic flexibility. This sale to Leonardo means that the employees of IDV and ASTRA will become an integral part of a significantly larger business, that will be better able to invest and compete in a segment whose strategic importance in Italy is paramount. The transaction is expected to be complete no later than March 31, 2026, subject to customary regulatory approvals and carve-out completion. On completion, Iveco Group intends to distribute the net proceeds of the transaction, subject to closing adjustments, to shareholders via an extraordinary dividend.

Astra off-road tractor unit

Olof Persson, CEO of Iveco Group, commented:

This agreement propels Iveco Group’s Defence Business into its proper dimension as a key contributor alongside Leonardo in the creation of a focused, world-class player in land defence activities. Our colleagues in the Defence Business will become part of a group with the scale and integrated capabilities to compete on all levels and for all platforms, with all the positive potential for innovation and continuous development.