The Iveco Group has completed the sale of its defense division to the Italian defense giant Leonardo. For a price of 1.6 billion euros, the IDV (Iveco Defence Vehicles) and Astra brands change hands. This paves the way not only for a massive special dividend, but also removes the last obstacle to the planned takeover by the Indian giant Tata Motors.
The deal, which was already initiated in summer 2025, envisions an enterprise value of 1.7 billion euros, leading to net proceeds of 1.6 billion euros after usual adjustments. For the shareholders of the Iveco Group, this is a reason to celebrate: the proceeds are to be almost completely distributed. A special dividend between €5.70 and €5.80 per share is planned. The final decision will be made at the extraordinary general meeting on March 25, 2026, and the payout is already scheduled for April 20.
High-mobility military trucks from IDV. Photo: Iveco
The way clear for Tata Motors
Behind the separation from the defense business lies cold calculation. The spin-off of IDV and Astra was one of the central conditions for the takeover offer from Tata Motors. The Indian company, which has already led Jaguar Land Rover to success, wants to fully swallow Iveco, but traditionally shows little interest in complex military entanglements. Through the sale, Iveco now focuses purely on its civilian core business with commercial vehicles, buses, and propulsion technologies (FPT).
Significance for the German location
This deal is also highly relevant for the German market. IDV operates a significant site in Ulm, where, among other things, protected vehicles for the Bundeswehr are developed and manufactured. With the transition to Leonardo, a new European heavyweight in the field of land defense is created, directly competing with major players like Rheinmetall or KNDS. Industry circles are already speculating whether Leonardo could long-term transfer parts of truck production to partners like Rheinmetall to leverage synergies in European tank manufacturing.
Amphibious wheeled tanks from Italy. Photo: Iveco
For the employees in Ulm, the change to Leonardo initially means stability. The new owner has the financial strength needed to meet the growing demand for military logistics in Europe. Iveco CEO Olof Persson emphasized that the step is necessary to give IDV the size required for global competition. While Iveco becomes leaner and more attractive for Tata, Leonardo cements its claim as a European champion in defense technology.
