Aerospace firm Leonardo could seek tie-ups
CEO sees consolidation in Europe’s fragmented defence industry as companies embark on joint projects
Milan — Italian aerospace and defence company Leonardo could seek partnerships in specific business areas, CEO Alessandro Profumo said, ruling out a merger involving the entire group. Speaking at a foreign media event, Profumo said he expected Europe’s fragmented defence industry to consolidate, with tie-ups emerging in specific business areas as companies embark on joint projects and strive to cut costs. “As a parent company, Leonardo isn’t planning to join a potential M&A [mergers and acquisitions] trend in the defence industry but I think there is room for M&A in Europe at business area level,” Profumo said on Monday. “We want to remain in the driving seat and lead the M&A process in those business areas where Leonardo is a leader. On the opposite side, in those areas where the group is not a leader it is open to cede control in a combination,” he said. The group is working on a potential alliance in torpedoes. Apart from that and a preliminary bid for the maintenance business ...
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