Rheinmetall’s Iveco Military Truck Deal Delayed by Leonardo Acquisition

The planned acquisition of Iveco’s military truck operations by Rheinmetall is facing delays due to complications surrounding Italy’s Leonardo’s purchase of Iveco Defence Vehicles (IDV). Whereas an agreement in principle exists between Rheinmetall and Leonardo, the transfer cannot proceed until Leonardo completes its acquisition of Iveco’s defense division.

Leonardo-Iveco Deal the Bottleneck

In 2025, Leonardo signed a definitive agreement to acquire Iveco Defence Vehicles and the ASTRA military truck division for approximately €1.7 billion ($1.9 billion). The deal was initially expected to close in the first quarter of 2026, pending regulatory approvals and asset separation. However, the completion of this initial transaction is now causing a ripple effect, pushing back Rheinmetall’s timeline.

Rheinmetall’s Position

Rheinmetall CEO Armin Papperger confirmed the delay, stating that it stems entirely from the pending Leonardo-Iveco deal. “The first deal between Iveco and Leonardo had a delay, and then our deal also has a delay,” Papperger told Reuters. Rheinmetall maintains weekly contact with Leonardo to monitor the situation.

What’s at Stake: Iveco’s Military Truck Operations

Iveco’s military truck unit produces a range of logistics and tactical vehicles used by armed forces worldwide. This includes the Eurocargo and Modular Military Range trucks, available in four-wheel, six-wheel, eight-wheel, and ten-wheel configurations. The company also manufactures heavy-duty ASTRA chassis designed for specialized military systems. Currently, Iveco is fulfilling a contract with Bucharest for the delivery of 860 tactical trucks for the Romanian Armed Forces as part of a larger 2,900-vehicle initiative launched in 2019.

Broader Restructuring at Iveco

The sale of Iveco’s defense business is part of a larger restructuring plan for Iveco Group, which also includes the planned sale of its civilian automotive operations to India’s Tata Motors for €3.8 billion ($4.3 billion).

Rheinmetall’s Existing Presence in Italy

Rheinmetall already has a manufacturing presence in Italy, producing air defense systems and unmanned aerial vehicles. Acquiring Iveco’s military truck operations would further expand the company’s capabilities and manufacturing capacity within the country.