UAE’s EDGE Acquires 80% of CMD to Strengthen European Defence Footprint
By Federico Maccioni
EDGE’s Strategic Acquisition of CMD: Key Details and Implications
DUBAI, May 14 (Reuters) - Emirati defence group EDGE has entered an agreement to acquire an 80% stake in Italy's Costruzioni Motori Diesel (CMD), it said on Thursday, as the state-owned conglomerate expands its footprint in Europe.
Overview of CMD and the Acquisition
Here are some details:
CMD’s Specialisation and Capabilities
• Based in Southern Italy, CMD specialises in advanced propulsion systems for automotive, marine, and aeronautical applications
Benefits and Strategic Goals of the Deal
• EDGE said the Italian company is expected to benefit from increased capital investment and access to new regional and international markets as a result of the deal
Statements from EDGE Leadership
• "By entering into this agreement with CMD, we are taking an important step in building a highly capable European propulsion hub that will complement and reinforce EDGE’s global industrial footprint," said Hamad Al Marar, EDGE's Managing Director and CEO
• "Our immediate focus is on aero engines, where CMD's piston engine expertise aligns directly with EDGE's existing portfolio. Beyond that, we see clear opportunities in military vehicles, as well as marine applications. Joint development is absolutely part of the plan," EDGE said
Financial and Structural Aspects of the Acquisition
• The Emirati group did not provide financial details for the deal, whose closing is expected by the end of the year. It said it would fund the acquisition through its own resources
• The current shareholders of CMD will maintain a "significant" minority stake as well as key managerial roles, EDGE said
Background on EDGE and Its Partnerships
• Founded in 2019, EDGE is owned by the government of Abu Dhabi. It produces weapons, drones, armoured vehicles, radios, radar systems and other military equipment, as well as technology for ships and cybersecurity
• It has several partnerships and joint ventures, including with Italian shipbuilder Fincantieri, while last year it said it would set up a JV with defence group Leonardo
(Reporting by Federico Maccioni, Editing by Louise Heavens)
