The Turkish company behind unmanned combat aerial vehicles (UCAVs) that have gained global fame has bought Italian aircraft producer Piaggio Aerospace, Italy's Industry Ministry said on Friday.
"The world's largest UCAV company, Baykar outbid rivals from multiple countries in a competitive tender for the sale of Piaggio Aerospace," the company said in a press release.
The statement came after the approval by Italy's Ministry of Enterprises. Financial details of the deal were not disclosed.
Established in 1884, Piaggio Aerospace – unconnected to Vespa scooter maker Piaggio – had been under government-controlled special administration since filing for protection from creditors in 2018.
In a statement, Italy's Industry Ministry said Baykar's offer for the company had been preferred over two other final and binding bids from international players.
It was deemed the "most suited to guarantee the interests of workers and creditors (of Piaggio Aerospace) and relaunch the group's industrial prospects," it said.
Baykar pledged to maintain and expand the production of aircraft and related technical support, training and logistics activities, as well as engine maintenance and engine component manufacturing, the statement added.
"As Baykar, we are bringing the strength of the Turkish aviation industry to Europe by acquiring Piaggio Aerospace, a company with a rich 140-year heritage," said Haluk Bayraktar, the company's CEO.
"With this strategic move, we are not only enhancing our production capacity but also taking on the responsibility of carrying a historic brand into the future," Bayraktar wrote on social media platform X.
Piaggio Aerospace is best known for producing the P.180 Avanti business jets, also known as the Ferrari of the skies, and aircraft engines.
The company also plays a strategic role in Italy's defense industry ecosystem due to its maintenance, repair and overhaul services, and is renowned for its contributions to Italy's technological infrastructure.
Mehmet Fatih Kacır, the Turkish industry and technology minister, called the acquisition "an indicator of the level of success Turkish aviation and Baykar have achieved on the global stage."
"This collaboration will also contribute to strengthening the bonds of friendship and economic relations between Türkiye and Italy," he wrote on X.
Adolfo Urso, Italian minister of Enterprises and Made in Italy, said the company's relaunch was guaranteed with a clear and ambitious industrial vision.
"After six years of waiting, we are giving Piaggio Aerospace, a strategic asset for our country, a future with a long-term production perspective, safeguarding corporate complexes and workforce," he said.
With the acquisition, Baykar is set to expand its influence in the European aviation market while preserving Piaggio's historical legacy and enhancing its production capacity, the statement said.
"Baykar's future vision includes growing the employment opportunities that Piaggio provides in Italy.
"This strategic move adds to the global successes of Türkiye's aviation industry and ensures that Piaggio's historical identity is carried into the future through this agreement," it added.
Baykar has become the face of Türkiye’s defense and aerospace sector and is one of the most prolific drone exporters worldwide.
Its Bayraktar TB2 combat drones gained prominence globally after being used by Ukraine's military against Russian forces as well as in campaigns in Azerbaijan and North Africa.
The Bayraktar TB2 bears the title of the most-exported combat drone in the world, according to company officials.
Baykar is the nation's top defense exporter, having constituted nearly one-third of the sector's record $5.5 billion worth of sales last year.
In 2023, 90% of its revenue came from foreign markets, with the company increasing its exports to $1.8 billion, up from $1.2 billion the previous year.
As of August this year, the company had signed agreements with 34 countries for its Bayraktar TB2 and 10 countries for its heavy Akıncı combat drones.
Baykar is also developing Türkiye's first unmanned fighter jet, Kızılelma, which made its maiden flight in late 2022 and recently launched its mass production.
Its Bayraktar TB3 drone, tailored for the country's first aircraft carrier, last month became the first in the world to successfully take off and land on a short-runway warship.
The TB3 is the first of its kind, boasting the ability to fold its wings. It made its maiden flight in late October last year.
Türkiye dominates 65% of the global drone export market, according to a report by the U.S.-based think tank Center for a New American Security,
Baykar alone holds nearly 60% of the market – three times the size of its closest U.S. competitor.
