John Cockerill negotiating with Volvo Group to acquire French company Arquus.

In a landmark move for the European defense industry, John Cockerill, a major supplier of light tank turrets, firing, and simulation systems, announces an exclusive agreement with the Volvo Group to acquire Arquus, a French major supplier of military vehicles. The deal is worth over EUR 300 million.
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Cockerill CPWS turret integrated into Arquus VAB armored personnel carrier (Picture source: JCD)

This prospective acquisition contributes to strengthening cooperation between France and Belgium in a strategic sector. It also aims to strengthen the Group’s footprint in the worldwide land defense market and broaden its portfolio of solutions to include an extensive range of advanced, high-mobility wheeled military vehicles. This will allow the group to better serve land forces around the world, with the best level of quality and cost competitiveness in both light tank turrets and in military vehicles.

The consolidated operations of John Cockerill Defense and Arquus are targeting an annual turnover of €1 billion and staffing of 2,000 professionals by 2026, with a worldwide presence and major operational bases in Belgium, France, Italy, India, and Saudi Arabia.

This consolidation shall represent a major step in supporting industrially the tight coordination established for vehicle sourcing programs between the French and Belgian land forces. It also represents a major milestone in the creation of a European defense champion, uniquely positioned to meet the evolving needs of governments in Belgium, France, Germany and other partner countries.

François Michel, CEO of the John Cockerill Group: "The expected acquisition of Arquus by John Cockerill is a transformative step for the European defense sector in the field of light tanks. The combined offer of light tank turrets and vehicles from John Cockerill Defense and Arquus will generate important synergies that will result in more innovative and more competitive vehicles to equip land forces around the world, starting in Belgium, France, and other partner countries."

Volvo Group, on its side, announces that it has signed an option agreement with John Cockerill Defense which gives the Volvo Group the right to sell Arquus after mandatory consultations with staff representative bodies. The consultations are expected to be finalized in the first quarter of 2024. As a result of the option agreement, the Volvo Group's operating income will be negatively impacted by approximately SEK 900M in the fourth quarter of 2023.

This transaction remains subject to the fulfillment of customary conditions for this type of transaction, including the information and consultation of works councils and other regulatory approvals.

Defense News January 2024