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Baykar’s Association with Italian Leonardo Sends Its Shares to Record Highs on Italian Stock Exchange

Baykar, a global leader in unmanned aerial vehicle (UAV) technology, made waves at the end of 2024 with a landmark acquisition. The company purchased Piaggio Aerospace, a 140-year-old aviation giant known for aircraft design, propulsion systems, and aerospace technology. This move aimed to reduce dependency on foreign technology in manned aircraft and propulsion systems while expanding Baykar’s technological foundation.

Following this acquisition, Baykar’s name has been linked with Leonardo, the Italian defense and aerospace giant. The announcement by Italy’s Minister of Enterprises and Made in Italy, Adolfo Urso, on Thursday regarding a possible collaboration between the two companies created ripples across Italian media and public opinion. The speculation sent Leonardo’s stock to its highest level since June 2020.

Turkey: A Global Powerhouse in UAV Technology

Turkey ranks second globally, after the United States, in drone technology, with products like Bayraktar, ANKA, Kargu, and Karayel. Leading this charge is Baykar, under the chairmanship of Selcuk Bayraktar, which closed 2024 with a major agreement.

The Piaggio Aerospace Acquisition

Baykar entered the competitive bidding process to acquire Piaggio Aerospace, an Italian aviation company founded in 1884. On December 27, 2024, the Italian Ministry of Enterprises and Made in Italy announced that Baykar had secured the winning bid to purchase the company. Known for producing P.180 Avanti business jets—referred to as the “Ferrari of the skies”—and aircraft engines, Piaggio Aerospace’s acquisition by Baykar created significant buzz in Italy.

Haluk Bayraktar, Baykar’s CEO, expressed his thoughts on social media in both Italian and Turkish:
“By bringing Piaggio Aerospace, a company with 140 years of heritage, under Baykar’s umbrella, we are extending the power of Turkish aerospace to Europe. This strategic move strengthens our production capacity while carrying a historic brand into the future.”

Adolfo Urso, Italy’s Minister of Enterprises and Made in Italy, called the acquisition “a new future for Piaggio Aerospace, a strategic asset for the country.”

Minister Urso’s Statement on Leonardo Partnership Fuels Speculation

While the Piaggio acquisition was still making headlines, Minister Urso’s remarks on Thursday caused further excitement. Speaking in the Senate, Urso commented on Baykar’s purchase of Piaggio Aerospace, stating that the deal contributes to defining the technological and industrial cooperation framework between Turkey and Italy. He added, “Following Baykar’s acquisition of Piaggio Aerospace, a collaboration with Italian defense giant Leonardo could be on the horizon.” Urso emphasized the importance of alliances with strong companies like Leonardo to bolster Italy’s aviation sector and European leadership.

Leonardo’s Stock Hits 23-Year High

Minister Urso’s remarks had a swift impact on January 10, as Leonardo’s stock on the Italian Stock Exchange surged by 1.43%, reaching its highest value since June 2000 at 28,000 points.

A Year of Growth for Leonardo

Leonardo experienced a strong upward trend in 2023, with its stock value increasing by 61.2% over the year. Investments and projects in the defense industry positively influenced its performance.

Toygun Atilla, the Editor-in-Chief of Patronlar Dünyası, weighed in on the potential partnership between Baykar and Leonardo in a column. He wrote, “Leonardo, named after Leonardo da Vinci and whose majority shareholder is the Italian government, aligns meaningfully with Baykar. The long-standing strong ties between Turkey and Italy could now be further strengthened by this collaboration.”

Leonardo: A Global Player in Defense and Aerospace

Leonardo SpA, formerly Leonardo Finmeccanica SpA, operates in the aerospace, defense, and security industries, with key markets in Italy, the UK, the US, and Poland. The company works across seven business sectors: helicopters, defense and security, electronics, aerospace, space, defense systems, and integrated technologies.

Through subsidiaries and joint ventures like DRS Technologies (defense solutions), Telespazio (satellite services), Thales Alenia Space (space manufacturing), MBDA (missile systems), GIE ATR (regional aircraft), and Sistemi Dinamici, Leonardo continues to be a significant global player in defense and aerospace.

With Baykar’s strategic acquisitions and Leonardo’s robust industry presence, a potential collaboration could redefine the aerospace and defense sectors in Europe and beyond.

Source: Patronlar Dünyası/ Prepared by: İlayda Gök

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