Italy’s Leonardo and Germany’s Rheinmetall entered a joint venture for the development and production of combat vehicles, targeting potential orders of up to $54.55 billion.

Italy's Leonardo and Germany's Rheinmetall have finalised a joint venture for the development and manufacturing of military combat vehicles, in what is seen as the first step in the consolidation of the European sector.

The companies want to deliver a new infantry fighting vehicle to the Italian army within two years and a new main battle tank within three years.