Delivers Over A Thousand Logistics Vehicles to Bundeswehr by Rheinmetall at Cost of 770 Million Euros
Rheinmetall Secures €770 Million Contract for German Army Logistics Vehicles and Negotiates Iveco Acquisition
Rheinmetall has secured a significant contract worth approximately €770 million to deliver over 1,000 logistics vehicles to the German Army. The delivery of these vehicles is expected to take place later this year, with the booked order for the third quarter of the year.
This contract is part of a larger framework agreement signed with the German Army in 2024, which has a potential value of up to €3.5 billion. However, this acquisition is a separate deal from the delivery of logistics vehicles to the German Army.
Meanwhile, Rheinmetall is exclusively negotiating with Italian defense conglomerate Leonardo regarding the potential purchase of Iveco's military trucks business. Leonardo has already signed an agreement to acquire the entire Iveco Defence division (including Astra and Iveco Defence Vehicles) for about €1.7 billion, a deal expected to complete in early 2026 subject to regulatory approvals.
The acquisition of Iveco's military truck business could potentially expand Rheinmetall's military truck production. The acquisition consolidates Leonardo's position in the European land defence market by integrating wheeled and tracked platform offerings from Iveco Defence, while also potentially allowing Rheinmetall to acquire part of the military trucks business from Iveco Defence Vehicles, although details and final terms of this potential acquisition by Rheinmetall remain under discussion.
It's worth noting that Iveco's military truck business generated around €500 million in revenue last year, according to Leonardo. The German Army has the option to call off these vehicles gradually.
The negotiations for the acquisition of Iveco's military truck business are ongoing, and no final agreement has been announced yet. The acquisition of Iveco's military truck business is a separate deal from the delivery of over 1,000 logistics vehicles to the German Army.
- Rheinmetall's potential acquisition of Iveco's military trucks business could potentially see them gain a stronger foothold in the aerospace, finance, and industry sectors, due to Iveco's presence in these areas.
- Under the community policy and employment policy considerations, Rheinmetall's negotiations for the acquisition of Iveco's military trucks business may have implications for both companies' workforces and the broader aerospace, finance, and industry sectors, particularly in terms of employment opportunities and industrial collaboration.
