Germany Approves Leonardo-Rheinmetall JV to Manufacture Combat Vehicles in Italy

Germany's competition authority, the Bundeskartellamt, has authorized the formation of a joint venture between Rheinmetall AG and Leonardo SpA.

The new venture, named Leonardo Rheinmetall Military Vehicles (LRMV), will be based in Rome and focus on delivering military solutions, particularly armored combat vehicles and main battle tanks.

As part of the collaboration, the Italian Ministry of Defense has mandated that 60% of the work for the defense orders must be carried out within Italy. LRMV will act as both the prime contractor and system integrator for these vehicles. Leonardo will contribute its expertise in defense electronics, while Rheinmetall will provide the Panther and Lynx platforms.

Bundeskartellamt President Andreas Mundt commented that the joint venture did not pose any competition concerns, as the companies’ activities are complementary with no significant overlap. The approval was expedited due to the necessity of the venture in meeting the specific demands of the Italian Ministry of Defense. Neither Rheinmetall nor Leonardo alone could fulfill the requirements—Leonardo lacked the platforms for main battle tanks, while Rheinmetall could not meet the Italian work requirement on its own.