The Italian government supports the plans of Iveco Group NV to break its activities by selling its defense unit to Leonardo Spa and its commercial truck department to India’s Tata Motors Ltd., according to people who are familiar with the business.
The government of Prime Minister Giorgia Meloni has indicated privately that it would support the proposed transaction, as long as the strategically important defense unit of Iveco was sold to a group led by Leonardo, a defense company controlled by the government, said that the people who ask for not being identified about discussing sensitive information.
The priorities of the government include protecting jobs and intellectual property, although according to people it has not fully expressed his approach.
An option that is currently being discussed is the use of a legal instrument with which the government can set conditions for deals for strategic assets.
Rome can block conditions or impose on transactions with strategic assets under the so-called Golden Power rule.
The government used this tool to set a series of hard terms during the failed takeover attempt from Unicredit Spa on Banco BPM Spa, which the bank attracted last week. The Italian government is convinced that Leonardo will acquire the defense unit of Iveco, the people said.
A spokesperson for the Italian government refused to comment. Iveco confirmed on Tuesday that it was in discussions to break his activities, which confirmed an earlier Bloomberg report that the company was preparing to announce the two deals in Wednesday when it reports the income.
“The government follows the evolution of the case closely,” said industry Minister Adolfo Urso this month. “In particular, we do this with regard to the role of Iveco for Italy and its impact on jobs.” At the same time, he said that Italy supports foreign investments of quality as long as technology, production and jobs are protected.
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Published on July 30, 2025
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