The Federal Cartel Office has granted approval for a strategic partnership between German defense company Rheinmetall and Italian aerospace and defense leader Leonardo. The newly formed joint venture, Leonardo Rheinmetall Military Vehicles (LRMV), will focus on manufacturing infantry fighting vehicles, battle tanks, and specialized vehicles, including bridge-building machinery.
The decision, announced Monday by Cartel Office President Andreas Mundt, concluded that the cooperation posed no significant competition concerns. The complementary strengths of the two companies were key to the approval.
“Leonardo lacks the platforms for battle tank production, while Rheinmetall would not have met the requirement to generate 60% of the added value in Italy,” Mundt explained. This collaboration ensures compliance with the Italian Ministry of Defense’s stipulations.
Leonardo, one of the world’s largest defense contractors, specializes in aerospace and information security, while Rheinmetall brings expertise in armored vehicle platforms.
The joint venture, evenly split between the two companies, has its headquarters in Rome. LRMV has its sights set on a lucrative €23 billion contract with the Italian army, which includes long-term supply and manufacturing commitments for advanced military vehicles.
Announced in October 2024, the joint venture reflects the increasing push for pan-European collaboration in defense manufacturing. By pooling resources and expertise, Rheinmetall and Leonardo aim to strengthen Italy’s military-industrial capabilities while meeting domestic defense production mandates.
If the Italian army contract is secured, LRMV will play a significant role in fulfilling Italy’s defense needs, bolstering both countries' positions in the global arms market.
