Italy Looking at Leonardo, Fincantieri Cooperation on Defense
Italy Looking at Leonardo, Fincantieri Cooperation on Defense
(Bloomberg) -- The Italian government is carefully reviewing options to bring closer together two of its biggest and most strategically significant defense assets: state-controlled Leonardo SpA and Fincantieri SpA.
The plan, according to several people familiar with the matter, is still at an early stage. But the idea is that the two national defense giants would punch above their weight under one structure with greater public direction in an area of geopolitical importance, the people said.
Leonardo is one of Europe’s biggest players in defense and Fincantieri has been building naval ships for over 200 years.
The backdrop to all this is key. Italy and France, fiercely protective of its own defense industry, are poised to sign a treaty that signals their tightening cooperation in the coming days.
Italian state-lender Cassa Depositi e Presititi SpA would likely also be part of the jigsaw.
Italy controls Fincantieri through Cassa Depositi and holds a 30% stake in Leonardo via the finance ministry.
Italy is also considering creating joint teams to bid for large contracts, according to the people. This hub would also be likely to involve Cassa Depositi.
Since taking office last February, Draghi has been calling for European Union countries invest more in a common defense program and urged governments to spend much more overall.
Italy’s push, according to one of the people, also fits with the EU roadmap on global security and defense priorities. The bloc has been looking to become more self-sufficient, in particular after the chaotic U.S.-led withdrawal from Afghanistan, and a new U.S.-led defense pact with Australia that saw France lose a massive submarine contract.
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