Rheinmetall’s intended acquisition of Iveco Group’s military truck division has been delayed due to holdups in Leonardo’s purchase of Iveco’s defense subsidiary, according to Reuters.
Leonardo signed a definitive agreement to acquire Iveco Defence Vehicles and the ASTRA truck unit in a deal valued at around €1.7 billion ($1.9 billion). Initially disclosed in 2025, the transaction is expected to close in the first quarter of 2026, contingent on regulatory clearance and asset separation.
Once the deal is completed, Rheinmetall plans to take over Iveco’s military truck operations. While the handover was originally expected by the end of March, formal negotiations cannot begin until Leonardo finalizes its acquisition.
Iveco’s defense offerings include a wide range of logistics and tactical vehicles, including Eurocargo and Modular Military Range trucks in four-, six-, eight-, and ten-wheel variants, along with heavy-duty ASTRA chassis for specialized military uses.
This divestment is part of a broader restructuring strategy that also encompasses the planned €3.8-billion ($4.3-billion) sale of Iveco’s civilian vehicle division to Tata Motors.
Iveco is actively engaged in current programs, such as delivering 860 tactical trucks to the Romanian Armed Forces under a 2,900-vehicle initiative started in 2019. Additionally, it holds a separate contract to supply 658 trucks to the Italian Army, increasing total deliveries under a 2024 agreement to over 2,000 vehicles, with production continuing through 2039.
