Italy Approves Leonardo-Baykar Partnership with 'Golden Power' Conditions

Italy has taken a significant decision in the defense industry by officially approving the joint venture between Leonardo and Baykar. The partnership aims to develop and produce unmanned aerial vehicles. The two companies will establish a new company called 'LBA Systems' with a 50-50 equal share structure. During the approval process, the Italian government imposed strategic security conditions under the 'Golden Power' authority. This regulation is applied to oversee the impact of foreign investments on national security. The joint venture is required to operate in full alignment with NATO and European Union policies. LBA Systems will deepen cooperation between the two countries in defense technologies. The partnership aims to increase competitiveness, particularly in the unmanned aerial vehicle market, and integrate into the European defense ecosystem. Italian officials emphasized that this step aligns with strategic autonomy goals. Baykar is known as one of Turkey's leading defense companies, while Leonardo is among Italy's largest defense industry organizations. The joint venture is expected to contribute to the defense capabilities of both countries. This is not investment advice.