{"id":38537,"date":"2018-09-14T20:40:18","date_gmt":"2018-09-14T20:40:18","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/09\/14\/fincantieri-leonardo-tussle-over-acquisition-ahead-of-french-tie-up\/"},"modified":"2026-08-07T23:02:57","modified_gmt":"2026-08-07T23:02:57","slug":"fincantieri-leonardo-tussle-over-acquisition-ahead-of-french-tie-up","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/industry\/2018\/09\/14\/fincantieri-leonardo-tussle-over-acquisition-ahead-of-french-tie-up\/","title":{"rendered":"Fincantieri, Leonardo, tussle over acquisition ahead of French tie-up"},"content":{"rendered":"\n

ROME \u2014 Italy\u2019s two state-controlled defense champions, Leonardo and Fincantieri<\/a>, have fought an unusual battle over the acquisition of a smaller company as they jockey for position ahead of their expected integration of naval work with French industry.<\/p>\n\n\n\n

Shipyard Fincantieri thought it had sewn up the purchase of Italian firm Vitrociset in August, only for Leonardo to snatch it from under its nose on Sept. 7, leaving the Italian government to step in to mediate.<\/p>\n\n\n\n

The tussle between two firms that both answer to the Italian state and closely cooperate on naval programs around the world is due to new rivalry as both edge toward teaming on naval programs with France\u2019s Naval Group.<\/p>\n\n\n\n

The Italo-French deal<\/a> is still being thrashed out, but may see a 10 percent share swap between Naval Group and Fincantieri and joint export campaigns to reduce the fractured nature of the European shipbuilding industry.<\/p>\n\n\n\n

The deal automatically involves Leonardo since it provides electronics, guns and radars for Fincantieri\u2019s ships. But Leonardo CEO Alessandro Profumo has expressed concerns that regarding ships built or marketed jointly by Fincantieri and the French, his systems may be overlooked in favor of those produced by Thales, which is a shareholder in Naval Group.<\/p>\n\n\n\n

Fincantieri and Leonardo have not announced how they will structure the cooperation between them within the context of the French deal.<\/p>\n\n\n\n

The story took a twist in July when Fincantieri announced plans to buy Vitrociset, a \u20ac187 million (U.S. $217.9 million) turnover Italian technology firm employing 800, which carries out training and support work in the defense, security, transport and space sectors.<\/p>\n\n\n\n

Fincantieri said it would take over Vitrociset\u2019s defense work, while its partner in the purchase, Italian firm Mer Mec, would assume control of its civil work.<\/p>\n\n\n\n

It was an unusual purchase, given that Vitrociset performs ground-support work for the F-35 fighter jet, but it was set to give Fincantieri control of Vitrociset\u2019s work on automation, command and control, and simulation, all usual capabilities giving it stronger hand in talks with Naval Group, and with Leonardo.<\/p>\n\n\n\t