The Bundeskartellamt, Germany's competition authority, has officially cleared the establishment of a joint venture named Leonardo Rheinmetall Military Vehicles (LRMV) between Rheinmetall AG and Leonardo S.p.A. This new entity will be based in Rome and is set to focus on military armoured vehicles, particularly main battle tanks and infantry fighting vehicles.

Rheinmetall, a prominent player in the defence and automotive sectors, and Leonardo, a major defence and aerospace company, will collaborate to meet the requirements of the Italian Ministry of Defence. The ministry mandates that at least 60% of the value-adding work must be conducted within Italy, which aligns with the capabilities of both companies.

Andreas Mundt, President of the Bundeskartellamt, noted that the joint venture did not raise any competition concerns due to the complementary nature of the companies' activities. He emphasized that there are no significant overlaps in their current business operations, allowing for a swift clearance of the venture.

Furthermore, the assessment highlighted that neither Rheinmetall nor Leonardo could independently fulfill the expected orders from the Italian Ministry of Defence. Leonardo lacks the necessary platforms for main battle tank production, while Rheinmetall cannot meet the requirement for local value-adding work on its own.