Italy Greenlights BlackRock's Stake in Defence Giant Leonardo

Italy has approved BlackRock's ownership stake over 3% in Leonardo, a major defence and aerospace group. The decision was subject to 'golden power' conditions which allow Rome to regulate strategic sectors such as energy and banking. BlackRock's stake exceeds Leonardo's bylaw restrictions, prompting an expected trim in holdings.

Italy has sanctioned BlackRock, the world's largest asset manager, to hold a stake exceeding 3% in Leonardo, the country's prominent defence and aerospace conglomerate, as per a document reviewed by Reuters.

The document, dispatched by Prime Minister Giorgia Meloni's office to parliament, touches on 'golden power' decisions. These allow Rome to regulate foreign and domestic investments in strategic sectors, such as telecoms, defence, and banking, by either blocking or imposing conditions.

'I am happy for the interest of BlackRock. It is an important recognition,' Leonardo's CEO Roberto Cingolani told Reuters. The cabinet approved BlackRock's stake on Sept. 18 under undisclosed conditions.

Meloni's office must authorize share ownership in any strategic firm listed on the Milan stock exchange when stakes cross specific thresholds like 3%, 5%, 10%, and up to 50%. A source revealed BlackRock is expected to reduce its stake to comply with Leonardo's bylaws, which cap external investors at 3%.

The economy ministry owns 30.2% of Leonardo. BlackRock holds significant stakes in Italy's financial sector, including 7% in UniCredit and 5% in Intesa Sanpaolo, the top two banks.

(With inputs from agencies.)