Leonardo and Rheinmetall sign tank alliance
The two groups signed the final agreements sealing the German-Italian alliance in land armaments outlined in a Memorandum of Understanding on 3 July
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Key points
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Leonardo and Rheinmetall at the wedding for tanks. The two groups signed the final agreements sealing the German-Italian alliance in the land armaments outlined in a Memorandum of Understanding on 3 July.
Stock market rallies
Sole 24 Ore's anticipations of 12 October are confirmed. Leonardo shares rose 3.24% to EUR 21.06 on 14 October. Those of Rheinmetall rose 3.83% to EUR 485.3, almost six times the value at the end of 2021 (around EUR 84). Leonardo also had a strong growth in the stock market since the end of 2021, the value of the shares more than tripled, the current capitalisation is 12.3 billion.
Fragmented sector
.Land armaments are the most fragmented sector of the European defence industry, to which, in the aftermath of the Russia-Ukraine war, substantial public resources will be allocated to increase military capabilities. Cingolani signed the agreements with Armin Papperger, CEO of the German giant.
Army orders worth 23.2 billion are on the way
.The ideal location for an announcement kicking off a reorganisation of the European defence industry. A 50:50 joint venture is to be established, based in Italy.
The mainstay of the agreement in the first instance is the future supply to the Italian Army of 280 tanks (half combat, the other half support vehicles) and over a thousand light infantry tracked vehicles, known as Aics or Aifvs. Two maxi-contracts for a value estimated by the DPP (Documento programmatico pluriennale della Difesa - Multiannual Defence Planning Document) at EUR 23.2 billion, over a period of 10-15 years. The JV will have to manage future contracts (not yet signed) with the Italian Defence, it will have personnel but no production plants. Production will be done in the factories of the two groups.


