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Italy’s 5-Star lawmakers oppose sale of Leonardo units to Franco-German KNDS -Breaking

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© Reuters. FILEPHOTO: May 22nd, 2017, the logo of defense group Leonardo was seen in Geneva (Switzerland). REUTERS/Denis Balibouse

ROME (Reuters – Italian lawmakers representing the 5Star Movement, the co-ruling party, on Monday urged Leonardo state-controlled defense organization Leonardo not to sell two units to Franco German consortium KMW+Nexter Defence Systems.

KNDS would like to purchase Leonardo’s OTO Melara or Wass units according to an Italian political source. The source also said that the government was interested in playing a central role in negotiations.

A statement was released by several 5 Star legislators saying that Leonardo had put Oto Melara’s activities and Wass’ plants up for sale. There is high possibility that these assets and plants will go to Franco-German groups.

“We oppose this prospect because it would mean that our country sells strategic companies overseas. These should remain under the state’s control and public knowledge.”

OTO Melara & Wass are Italian companies that make naval guns and torpedoes. They employ over 1,500 people at four Italian facilities.

Rome, according to another government source is looking for a solution that protects its national interest while allowing international cooperation.

Sources tell Reuters that Fincantieri, an Italian shipbuilder, is interested in purchasing the two Leonardo units.

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