KNDS and Leonardo abandon talks on strategic partnership

By Defence Industry Europe

Negotiations between KNDS, a leading European manufacturer of military land systems, and Leonardo, an Italian aerospace and defence company, have officially ended without agreement. The two companies had been in discussions since December 2023 to explore a potential strategic partnership aimed at enhancing European defence capabilities.

 

The negotiations aimed at two primary objectives: forming a strategic alliance between Leonardo’s defence division and KNDS, and jointly developing and producing the Leopard 2A8 battle tank for the Italian Ministry of Defence. Additionally, the collaboration sought to address the Italian procurement program for an infantry fighting vehicle.

Frank Haun, CEO of KNDS N.V., commented on the situation: “With 18 European user countries, Leopard 2 is the battle tank standard of our continent and of NATO. It is more important than ever to safeguard this standard, which makes a significant contribution to the interoperability and joint combat power of the European and NATO armies. The parties did not manage to agree on configuration and consequently, talks about Leonardo’s strategic participation in KNDS have also fallen short. Yet KNDS continues to be committed to support the Italian Army.”

 

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Leonardo also released a statement confirming the cessation of talks. Despite considerable efforts, the companies could not reach a consensus on a common configuration for the Main Battle Tank program for the Italian Army. Leonardo emphasized its ongoing commitment to providing the Italian Army with advanced, interoperable solutions that meet current requirements and position the company favorably for future developments in the Main Ground Combat System.

“Leonardo confirms its commitment to provide the Italian Army with a performant, interoperable and up-to-date solution, satisfying the present requirements and remaining well positioned for future developments toward Main Ground Combat System, also through cooperation with other qualified international partners,” the statement from Leonardo read.

 

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