Leonardo co-general Manager Lorenzo Mariani said significant consolidation among European defense companies in the future will lead to a healthier defense sector in the region.
In an interview with Breaking Defense published on Thursday, Mariani discussed how consolidation differs from the mergers and acquisitions practice in the United States and how it is more similar to the five-nation missile manufacturer MBDA.
“The reason why MBDA has been so successful, in my view, is that it was capable of keeping the national element — including security, but also workforce, even restricted elements, national sovereignty — safe while exploiting the size of a joint company,” the executive said.
When asked which area of the European defense sector will experience consolidation, Mariani said he expects the cyber, space and shipbuilding industries to take the lead. “Cyber is still very fragmented … And I think that is the area where taking into account how delicate these matters are for national security, is a little bit an obstacle to consolidation. But nevertheless, there will be a movement there,” he said.
His comments came a day before the Italian defense company’s announcement that it has formed a temporary grouping of companies with Intermarine to secure a deal from the Italian Directorate of Naval Armaments for new minehunters.
Under the new contract, the two organizations will support Italy’s New Generation Minehunters program, which aims to perform various missions, including seabed surveillance operations and the protection of cultural heritage and the maritime ecosystem.
The deal benefits the Italian Navy by equipping the service with new vessels designed to research and clear sea mines.