Italy approves Leonardo-Baykar drone venture
Analysis based on 8 articles · First reported Jun 17, 2026 · Last updated Jun 17, 2026
The approval of the joint venture between Leonardo (company) and Baykar is expected to boost the European drone industry, with a projected market value of $100 billion over the next decade. This collaboration strengthens both companies' market positions and could lead to increased investment and innovation in the defense and aerospace sectors.
The Italian government has given conditional approval to a 50-50 joint venture between state-controlled defense group Leonardo (company) and Turkish drone manufacturer Baykar. The partnership, named LBA Systems, aims to develop and produce next-generation unmanned aerial systems, addressing Europe's weakness in the drone industry. The approval was granted under Italy's 'Golden Power' rules, which allow the government to impose conditions on investments in strategically important sectors. Key conditions include limiting international sales and development to countries aligned with European Union and NATO policies, and classifying all technology used in the drones to safeguard Italy's strategic interests. This deal, initially announced in March 2025, is expected to provide Leonardo (company) access to a significant drone market and allow Baykar to expand its industrial activities in Italy and strengthen its access to European defense markets. Defence Minister Guido Crosetto backed the approval.
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