Turkish Drone Giant Baykar to Acquire Italian Aerospace Firm Piaggio

Turkish drone manufacturer Baykar Makina has received approval from Italian authorities to acquire Piaggio Aerospace, a historic Italian aviation and defense company, marking a significant development in the European aerospace sector, Bloomberg reports.

The Italian Industry Ministry officially authorized the sale to Baykar, a leading producer of unmanned aerial vehicles (UAVs), according to a recent statement.

While financial details of the deal were not disclosed, the ministry confirmed that three binding offers were received before selecting Baykar. Piaggio Aerospace, previously known as Piaggio Aero Industries SpA, designs and manufactures aircraft and aeronautical engines for both military and civil use. The company has been on the market for several years as it navigated financial challenges.

Piaggio has been under state-supervised insolvency proceedings since 2018, a status aimed at helping larger companies restructure. The company, currently split into two entities, Piaggio Aero and Piaggio Aviation, was formerly owned by Abu Dhabi’s Mubadala Investment Company.

Italy’s Industry Minister Adolfo Urso hailed the acquisition as a positive step, emphasizing its strategic importance.

Baykar is rapidly becoming a major player in the global defense industry. The company is a leading Turkish exporter, selling its advanced drone technology to numerous nations. Selcuk Bayraktar, Baykar’s chief technology officer, is also the son-in-law of Turkish President Recep Tayyip Erdogan and has been recognized as Turkey’s top income taxpayer for at least three consecutive years.

The acquisition of Piaggio Aerospace will provide Baykar with a valuable foothold in the European aerospace market and potentially allow for further expansion and diversification of its product offerings.