Iveco is in advanced talks to sell its defence division to Leonardo for €1.6 billion and its truck arm to Tata.
Italian commercial‑vehicle maker Iveco is poised to divest its defence business to Leonardo—Europe’s second‑largest defence contractor—in a deal valuing the military division at €1.6 billion. Simultaneously, Iveco is negotiating the sale of its civilian‑truck operations to India’s Tata Motors, owner of Jaguar Land Rover.
These separate transactions, still subject to regulatory approval and final agreements, would effectively dismantle the Iveco group, long viewed as an acquisition target. With a market capitalisation near €4.2 billion, Iveco ranks as Europe’s smallest major truck builder. Carving out the defence arm ensures production of armoured vehicles and light tactical systems remains under Italian ownership, addressing government concerns about strategic industries.
Iveco’s majority shareholder, Exor—controlled by the Agnelli family—supports the split, reflecting a broader diversification strategy into sectors such as healthcare and luxury goods. The proposed divestment follows heightened defence spending across NATO due to the Ukraine conflict, which has driven Iveco’s share price to double year‑to‑date.
Pending conclusion, the deals will redefine Iveco’s footprint and underscore Italy’s leverage in securing critical defence assets.
