Potential Chinese stake. Iveco Group, a global leader in commercial vehicles and powertrains, could see Chinese investment in its core business following the planned spin-off of its defence division, Iveco Defence Vehicles (IDV).
- This restructuring is a prerequisite for any foreign acquisition, as reported by Corriere della Sera.
- Iveco has longstanding partnerships in China, including joint ventures with Nanjing Automobile Corporation (NAC) and Shanghai Automotive Industry Corporation (SAIC).
- Interest from India has also surfaced, particularly in the agricultural vehicle sector, though no concrete agreements have been reached.
A flashback. In 2020, negotiations between Iveco and FAW—the largest Chinese automaker—stalled over valuation discrepancies, deal structuring complexities and the likelihood of the Italian government invoking the so-called golden powers that allow the government to block or set conditions on foreign and domestic corporate takeovers in strategic sectors.
- The then-Draghi government welcomed the breakdown, citing the strategic importance of Italy’s heavy vehicle production.
- “Italy has closely monitored this case because heavy-duty vehicle manufacturing is of national strategic interest,”said Giancarlo Giorgetti, then minister of Business (now minister of Finance under the Meloni government).
The Defence spin-off. Iveco Group formally separated from CNH Industrial in 2022, consolidating its portfolio under seven brands, including IDV, a key defence and civil protection vehicle supplier.
- Last February, Iveco initiated the spin-off of IDV, appointing Goldman Sachs to manage the process, which isexpected to conclude by year-end.
- Potential outcomes include an IPO, with analysts estimating a valuation above €1 billion, driven by increased defence sector demand.
- Corriere della Sera reported that interested buyers include Franco-German defence alliance KNDS, Czech group CSG, British giant BAE Systems, and Italian defence firm Leonardo (potentially acquiring IDV through its joint venture with Germany’s Rheinmetall to produce tanks and armoured vehicles for Italy’s armed forces).
