Italy Greenlights BlackRock's Stake in Defense Giant Leonardo

Italy has approved BlackRock's acquisition of a stake exceeding 3% in Leonardo, a leading Italian defense and aerospace group. This decision comes under Italy's 'golden power' regulations, which allow the government to oversee and impose conditions on investments in strategic sectors.

In a significant move, Italy has granted approval to BlackRock, the world's largest asset manager, to hold a stake exceeding 3% in Leonardo, the prominent Italian defense and aerospace group.

The decision, outlined in a document from Italian Prime Minister Giorgia Meloni's office to parliament, falls under the country's 'golden power' regulations. These powers enable Rome to block or set conditions on both foreign and domestic investments in strategic sectors such as energy, telecoms, defense, and banking.

Leonardo's chief executive, Roberto Cingolani, welcomed BlackRock's interest, calling it an 'important recognition.' According to Italian legislation, Meloni's office must approve share ownership in any strategic company listed on the Milan stock exchange when the stake surpasses specific thresholds, ranging from 3% to 50%. The cabinet granted BlackRock's authorization on September 18, subject to some unspecified conditions.

(With inputs from agencies.)