Joint Venture Approval

The German Federal Cartel Office has officially approved the joint venture between Rheinmetall from Duesseldorf and Italy's Leonardo. This partnership aims to develop and manufacture military combat vehicles, marking a significant step forward in defense collaboration between Germany and Italy.

About the New Company

The newly formed company, Leonardo Rheinmetall Military Vehicles (Lrmv), will be headquartered in Rome. It is set to take on the role of prime contractor and systems integrator for the production of military armored vehicles, including main battle tanks and infantry fighting vehicles, should it secure the contract from the Italian Ministry of Defense. A key requirement is that at least 60% of the project's added value must be generated within Italy.

Why This Matters

"The approval of this joint venture is a testament to the necessity of collaboration in the defense sector. Neither company could have fulfilled the Italian Ministry of Defence's expected orders independently. Leonardo lacks the necessary platforms for main battle tank production, and Rheinmetall would not have met the 60% Italian value-adding work requirement," explained the regulator.