Iveco Group transfers its Defence Business to Leonardo to create a European champion in the defence segment

Core Viewpoint - Iveco Group N.V. has transferred full ownership of its Defence Business to Leonardo S.p.A. for an enterprise value of €1.7 billion, creating a stronger competitor in the European land defence segment [1]. Group 1: Transaction Details - The sale price for the Defence Business is set at €1.6 billion, subject to closing adjustments, with final settlement expected by early April [1]. - The Defence Business Unit had a book value of €313 million as of 31 December 2025 and has been classified as "Discontinued Operations" since Q3 2025 [4]. Group 2: Shareholder Impact - Net proceeds from the sale will be distributed to shareholders as an extraordinary interim dividend, estimated between €5.7 and €5.8 per share, with payment anticipated in April [2]. - The Extraordinary General Meeting on 25 March 2026 will discuss the distribution of the extraordinary dividend, and the agenda item regarding the spin-off of the Defence Business has been removed [3]. Group 3: Strategic Implications - The separation of the Defence Business is a condition for the completion of Tata Motors Limited's voluntary tender offer for all issued common shares of Iveco Group [5]. - The transaction is expected to enhance the capabilities of the Defence Business under Leonardo S.p.A., allowing it to compete more effectively in global markets [5]. Group 4: Company Overview - Iveco Group N.V. is a global player in the automotive industry, employing 33,000 people and operating 16 industrial sites and 22 R&D centers, focusing on sustainable mobility and customer-driven technologies [6].