Leonardo, the Italian defence group, intends to use the purchase of a stake in military sensor maker Hensoldt as a springboard to expand its presence in Germany’s growing defence market, according to its chief executive.

The deal, agreed at the weekend, could help drive European consolidation in the sector and eventually pave the way for the creation of a major defence electronics concern.

Under the terms of the deal, Leonardo will buy a 25.1 per cent stake in Hensoldt from private equity group KKR for €23 a share in cash or about €606m.

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Source: Financial Times

By Sylvia Pfeifer