The joint venture aims to secure upcoming contracts from the Italian Ministry of Defence for military armoured vehicles, including main battle tanks and infantry fighting vehicles. LRMV will serve as the prime contractor and systems integrator if awarded the contracts, which stipulate that at least 60 per cent of the value-added work must be carried out in Italy.
Rheinmetall will bring its expertise in military vehicle platforms, such as the Panther main battle tank and Lynx infantry fighting vehicle. Leonardo, leveraging its position as one of the world’s largest defence firms, will focus on integrating its advanced defence electronics into the projects. Rheinmetall’s established presence in Italy will support compliance with local production requirements.
Andreas Mundt, President of the Bundeskartellamt, commented on the approval, highlighting the complementary nature of the two companies’ operations. “Rheinmetall and Leonardo are undoubtedly two major defence companies. Nevertheless, the creation of the joint venture did not raise any competition concerns and could be cleared quickly,” he said.
The Bundeskartellamt’s assessment also noted that neither Rheinmetall nor Leonardo could independently fulfil the Italian Ministry of Defence’s requirements. Leonardo lacks the necessary vehicle platforms, while Rheinmetall would struggle to meet the local production quotas. This collaboration, therefore, enables both companies to meet the demands of a key defence market.
The establishment of LRMV reflects the ongoing shifts within the defence industry driven by geopolitical challenges. The partnership between these two European defence giants is expected to strengthen their capabilities while ensuring compliance with Italy’s strategic industrial requirements.
Source: Bundeskartellamt.
