Leonardo-Rheinmetall, agreement to be announced early this week

The joint venture between Leonardo and Rheinmetall on military ground vehicles is on the home stretch. The announcement, as reported by Radiocor, is expected early next week. The 50/50 joint venture between the Italian group (50%) and the German group (Rheinmetall Italia should have 10%, the Duesseldorf parent company 40%), will be based in Italy.

The first objective of the alliance is the industrial collaboration for the programmes to supply the Italian Army with new heavy tanks, based on the German group's Panther model, and the infantry combat tracked vehicle, based on Rheinmetall's Lynx model: the total value of the two programmes is over 20 billion euros over ten years. However, the declared intention of the two partners is also to focus on exports, and in recent months, Rheinmetall CEO Armin Papperger has emphasised the interest already garnered from some potential customers.

The strategic agreement - the subject of the memorandum signed in July by Leonardo's CEO, Roberto Cingolani, and Papperger himself - also aims to lay the foundations for future participation in the development of the European 'main ground combat system'.

From the governance point of view, the JV - according to Leonardo's co-director general Lorenzo Mariani, who has indicated in recent days - will be led by a managing director indicated by the Italian partner, while Rheinmetall will indicate the chairman.