Rheinmetall apparently wants to acquire up to 49 percent of a division of the Italians.
(Photo: Reuters)
Berlin The armaments group Rheinmetall wants to expand its business in Italy by investing in Oto Melara. A few days ago, the Düsseldorf-based company made a non-binding offer for a partial acquisition with the parent company Leonardo, the Handelsblatt learned from industry circles. According to a report by the Reuters news agency, the price for up to 49 percent of the shares is between 190 and 210 million euros. According to the agency, the companies involved declined to comment.
Oto Melara produces armored vehicles and guns, among other things, and is classified by the Italian government as central to national defense. Ultimately, Rome will decide who will be awarded the contract.
According to earlier information, the Italian shipyard group Fincantieri and the German-French tank builder Krauss-Maffei Wegmann/Nexter (KNDS) had also expressed an interest in Oto Melara. A person familiar with the events reported to the Handelsblatt that these talks had been broken off without result.
The idea of consolidating the European armaments industry is not off the table. Unlike in the USA, the industry is very frayed. The European manufacturers offer more than a dozen different main battle tanks. Against the background of the Ukraine war and the increasing defense budgets, a market shakeout would make sense in order to be able to implement large projects more quickly at lower costs.
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Rheinmetall has taken over a number of companies in recent years, but there was not one big hit. CEO Armin Papperger expressed his interest in further acquisitions in an interview with the Handelsblatt on Thursday.
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