Italy Approves Conditional Leonardo-Baykar Partnership in The UAV Sector
Conditional Approval of Leonardo-Baykar UAV Joint Venture
Background and Announcement
ROME, June 17 (Reuters) - Italy's government has given conditional approval to the joint venture between state-controlled defence group Leonardo and Turkey's Baykar to produce unmanned aerial vehicles (UAVs), a source told Reuters on Wednesday.
The deal, first announced in March 2025 and structured as a 50-50 partnership, aims to address Europe's weakness in the drone industry, with the two groups seeing a UAV market worth some $100 billion over the next 10 years.
Government Approval and Conditions
The government cleared the partnership at a cabinet meeting on Tuesday.
Restrictions on Sales and Technology
Under one of its conditions, sales of the drones and any further international development of the joint venture will be limited to countries politically aligned to Europe and NATO. All technology used in the drones will be classified.
Application of "Golden Power" Rules
Italy exercised its so-called "golden power" rules, aimed at protecting strategic national interests in mergers and acquisitions, which allow the government to impose conditions or even block deals.
Implications for the European Market
Baykar's Access and Industrial Expansion
The agreement with Leonardo allows Baykar, one of the world's largest drone exporters, to access the European market and opens the way for expanded industrial activities in Italy.
Media Coverage
The government approval of the joint venture was first reported by Italian daily Il Messaggero.
Reporting Credits
(Reporting by Giulia Segreti in Rome, editing by Alvise Armellini)
