A delay in Leonardo’s acquisition of Iveco Group’s defense arm is slowing Rheinmetall’s plan to purchase the firm’s military truck business, according to Reuters.
The development comes after Leonardo signed a definitive agreement to acquire Iveco Defence Vehicles along with the ASTRA military truck division in a deal valued at approximately €1.7 billion ($1.9 billion). First disclosed in 2025, the transaction is expected to be finalized in the first quarter of 2026, subject to regulatory approvals and asset separation.
Rheinmetall intends to acquire Iveco’s military truck operations from Leonardo once the deal is completed. While the company had anticipated beginning the transfer process by the end of March, negotiations cannot proceed until Leonardo formally closes its acquisition.
Iveco’s military vehicle portfolio includes logistics and tactical platforms such as Eurocargo and Modular Military Range trucks, available in four-, six-, eight-, and ten-wheel configurations, along with heavy-duty ASTRA chassis tailored for specialized defense applications.
The divestment is part of a broader restructuring plan that also involves the proposed €3.8-billion ($4.3-billion) sale of Iveco’s civilian automotive division to Tata Motors.
Meanwhile, Iveco continues ongoing programs, including the delivery of 860 tactical trucks to the Romanian Armed Forces under a 2,900-vehicle initiative launched in 2019. The company also holds a separate contract to supply 658 trucks to the Italian Army, bringing total deliveries under a 2024 agreement to more than 2,000 vehicles, with production scheduled through 2039.
