What Leonardo will do in Brazil
All Leonardo's chances in Brazil even after the letter of intent on defense cooperation signed by Italy and Brazil. Facts and analyzes
Italy and Brazil recently signed a letter of intent to strengthen cooperation in the defense sector. It was signed by Defense Minister Lorenzo Guerini and by the Brazilian counterpart Walter Souza Braga Netto.
The document highlights the role of Italian companies operating in the Brazilian defense sector and which could stimulate the growth of its industrial sector.
THE PRESENCE OF LEONARDO IN BRAZIL
Leonardo has been operating in Brazil – since the 1970s – (a former Finmeccanica group). It deals with the development and production of AM-X fighter-bomber aircraft (together with the Brazilian company Embraer) and the supply of helicopters, avionics radars and products for space.
Leonardo's registered office in Brazil is in Brasilia, the capital. Iveco is also present in the country's defense industry.
OPPORTUNITIES
Banca Akros (whose rating on Leonardo's shares is buy ) considers the letter of intent between the Italian and Brazilian governments as potentially positive for Leonardo. In fact, the company, together with Iveco, is among those competing for the supply to the Brazilian army of a new 8 × 8 armored vehicle under the VBC Cav program.
As reported by Ares-Osservatorio Difesa , the program “will aim to obtain 98 vehicles by 2038, two for the sample lot and seven for the lote de experimentação doutrinária (LED)”.
Leonardo is competing with his armored vehicle model "Centauro II", equipped with a 105 or 120 mm gun.
THE LEONARDO-HENSOLDT AGREEMENT
A few days ago Leonardo announced the finalization of the acquisition of a 25.1 percent stake in Hensoldt, a German company that deals with defense sensors. Leonardo thus became the largest shareholder of the company together with the German government, which owns a 25.1 percent stake.
The transaction – worth 606 million euros – involved Leonardo and Square Lux Holding II, a subsidiary of the American investment company KKR & Co. The latter will hold an approximately 18 percent stake in Hensoldt.
Leonardo and Hensoldt already collaborate on the Eurofighter Typhoon program, the fourth generation multi-role fighter.
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/smartcity/leonardo-brasile/ on Fri, 07 Jan 2022 10:55:05 +0000.