Belgium’s John Cockerill to Acquire French Military Vehicle Supplier Arquus

John Cockerill, a supplier of light tank turrets and simulation systems, has entered an exclusive agreement with the Volvo Group to acquire Arquus, France’s primary military vehicle supplier.

The acquisition aims to expand the group's portfolio to include advanced, high-mobility wheeled military vehicles.

The consolidation of John Cockerill Defense and Arquus targets an annual turnover of €1 billion and a workforce of 2,000 professionals by 2026, with operational bases in Belgium, France, Italy, India, and Saudi Arabia. This move supports joint vehicle sourcing programs between the French and Belgian land forces, contributing to the establishment of a European defense champion. This transaction is contingent upon customary conditions, including information and consultation with works councils and regulatory approvals.

The acquisition combines John Cockerill's turrets and firing systems with Arquus, the supplier of 90% of the French army’s wheeled vehicles. Arquus currently features a fire-support variant of its VAB Mk3 armored personnel carrier, equipped with a 90mm turret from John Cockerill.

Volvo Group has signed an option agreement with John Cockerill Defense, granting the right to sell Arquus after staff consultations, expected to conclude by the end of March, subject to government approvals. In a related move, John Cockerill merged its French defense business with its Agueris training-simulator unit in January 2023.

In financial terms, John Cockerill reported 2022 sales of €1.05 billion, while Arquus recorded 2022 revenue of €559 million and an operating profit of €21.5 million. Volvo Group expects a charge of 700 million Swedish kronor ($87 million) against the 2023 fourth-quarter operating income for the sale of Arquus.