Leonardo CEO: Europe may build defence giants to compete with US

Europe’s fragmented defence sector will eventually consolidate into major players capable of rivalling US and Chinese giants, according to Roberto Cingolani, CEO of Italy’s largest military contractor, Leonardo SpA.

In an interview with Bloomberg TV from Leonardo’s headquarters in Rome, Cingolani expressed confidence in the region’s long-term ability to unify its defence industry through mergers and acquisitions, Caliber.Az reports.

“I have no doubt that in the future, Europe will find a way,” he said, adding that consolidation will require a gradual approach beginning with joint ventures and strategic partnerships. “You have to do it progressively.”

Leonardo, whose largest shareholder is the Italian government, is already pursuing collaborations aimed at streamlining the defence sector and reducing redundant investments.

Cingolani highlighted ongoing talks with Airbus SE and French aerospace group Thales SA to create a European space and satellite leader. The initiative, which follows a structured “road map,” is considered a critical test case for broader European defence integration and aims to improve competitiveness against dominant players like Elon Musk’s SpaceX.

In a separate effort, Leonardo has partnered with Germany’s Rheinmetall AG to modernise Italy’s fleet of armoured vehicles. The joint venture, established last year, recently submitted a non-binding offer to acquire the defence division of Iveco Group NV. Cingolani indicated the partnership could expand further in scope.

The vehicles that emerge from the Rheinmetall partnership will be “more digital, more interconnected, more interoperable, faster and effective” than competing models, he said. “We will make machines that will open a much bigger market.”

By Sabina Mammadli