Fincantieri, Iveco and more. Here are the companies that want Oto Melara from Leonardo
Joint option of Fincantieri and Knds on Leonardo's former Oto Melara? But there are other Italian industrial players interested. Such as Iveco Defense Vehicles, Oto Melara's partner in terrestrial systems through the IOC, according to Banca Akros. All the news
Joint offer by Fincantieri and Knds for Leonardo's former Oto Melara?
"It is the latest press indiscretion according to which the Italian Fincantieri, interested in the naval business of Oto Melara and the torpedoes produced by Wass, and the Franco German Knds, interested in the land activities of Oto Melara, could present a joint offer for the two companies that the defense group led by Alessandro Profumo intends to sell ” MF reports today.
And Knds would not even be the only European player interested in Leonardo's Defense Systems BU (SDI). There are also the German Rheinmetall ( as Start had reported here ) and, in the background, the British of Bae Systems, reported La Stampa .
So far, Profumo has declined to comment on the possible sale of Oto Melara.
Oto Melara and Wass, which produce naval guns and torpedoes respectively, employ more than 1,500 workers in four Italian plants (La Spezia, Brescia, Livorno and Pozzuoli). Since 2016 they have both been part of Leonardo's Defense Systems division. The division's turnover is approximately 550 million euros.
In the meantime, the government's eyes focused on the story of Leonardo's Bu Sistemi Difesa. "The goal is to work on maintaining a national garrison open to European industrial cooperation," Defense Minister Lorenzo Guerini said yesterday.
“We are holding talks with Leonardo and with other Italian industrial players who may be interested,” revealed Guerini. In addition to Fincantieri, according to Banca Akros, the reference is to Iveco Defense Vehicles, partner of Oto Melara in terrestrial systems through the IOC.
All the details.
THE KNDS NEGOTIATION
According to press sources, the Franco-German consortium Knds presented Leonardo with an offer to buy Oto Melara for approximately 650 million euros. A figure that would be convenient at this time for the giant led by Alessandro Profumo: in fact, equal to the outlay necessary for the closing of the 25% acquisition of the German company Hensoldt .
THE OFFER OF FINCANTIERI
According to Repubblica , Knds' offer as "more consistent" than Fincantieri's, and said it was worth up to three times as much. "Hypothesis that well-informed sources heard by Defense Analysis have denied," wrote the director of Defense Analysis , Gianandrea Gaiani. "Knds would have offered 650/700 million euros for both assets (based on an estimated turnover for the two assets of more than 550 million with a margin of around 10%, the price offered implies a multiple of more than 10 times, higher than that to which Leonardo deals) and Fincantieri 200 million less (450 million) ” reports MF .
"Fincantieri, who did not comment, would need a capital increase to make an offer", Il Sole 24 Ore stressed on Saturday.
“If there is a theme of funds and investments”, the historian Giulio Sapelli commented to La Verità , “it would be enough to call Cassa Depositi e Prestiti and carry out a capital increase”.
JOINT SOLUTION OF THE TRIESTE GROUP WITH THE FRANCO-GERMAN CONSORTIUM?
But today something new emerges: there is talk of a joint offer between the shipbuilding group led by Giuseppe Bono and the Franco-German consortium.
Fincantieri would thus focus on the naval business of Oto Melara and the torpedoes produced by Wass, and Knds on the land activities of Oto Melara.
“A win win solution” remarks MF . "In fact, it would make it possible to maintain a national presence on the two assets and at the same time allow Italy to be more involved in European defense development programs in particular, the program of the new European MGCS tank, with positive repercussions on Leonardo in terms of greater volumes in the electronics business ".
"Furthermore, a joint solution could be ideal for Fincantieri both to reduce the economic commitment required, in light of the objective of de-leverage in the coming years, and to strengthen a European defense agreement that could also involve ThyssenKrupp Marine in the future. Systems, which has often been talked about in the past ”underlines Milano Finanza .
THE REFERENCE OF MINISTER GUERINI TO OTHER ITALIAN INDUSTRIAL PLAYERS
But on the future affair of Leonardo's Defense Systems division (Oto Melara and Wass), trade unions and politicians are on alert.
So much so that yesterday the same Minister of Defense, Lorenzo Guerini, undertook to keep Oto Melara and Wass in Italian hands.
“For us it is very important, because the division offers products of absolute excellence, of international fame. The government is very careful; Italian control over these assets must not vanish (…) we are holding talks with Leonardo and with other Italian industrial players who may be interested, ”said Guerini.
FOR BANCA AKROS ALSO IVECO DEFENSE VEHICLES BEYOND FINCANTIERI INTERESTED IN OTO MELARA
"Well, when Guerini talks about other Italian industrial players, Banca Akros tends to think of Fincantieri, but also of Cnh Industrial / Iveco Group / Iveco Defense Vehicles, partner of Oto Melara in land systems through the Iveco Oto Melara Consortium (CIO)" reports MF .
In addition to being an Italian entity, “Iveco Defense has another strong point: it works in consortium with Oto Melara for programs already financed by the Army”, Repubblica recalled last week. In 1985 Oto Melara became part of an equal consortium with Iveco, forming the current Cio Iveco-Oto Melara, leader of the land armaments industry.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/fincantieri-iveco-e-non-solo-ecco-le-aziende-che-vogliono-oto-melara-da-leonardo/ on Wed, 17 Nov 2021 13:05:41 +0000.