BEIRUT — The EDGE Group, the UAE’s largest defense conglomerate, signed an agreement today to acquire a “controlling stake” in Italian engine maker CMD (Costruzio ni Motori Diesel), the company announced.
“The agreement, which is subject to customary closing conditions and applicable regulatory and governmental approvals, represents a strategic move to expand EDGE’s footprint in advanced engineering, Industry 4.0, and power solutions,” EDGE said in the statement, noting the deal is expected to close by the end of the year.
CMD designs and develops propulsion systems for automotive and marine systems, including fast patrol vessels and Unmanned Aerial Vehicles (UAVs). The company has a plant in Atella, in southern Italy.
“By entering into this agreement with CMD, we are taking an important step in building a highly capable European propulsion hub that will complement and reinforce EDGE’s global industrial footprint,” said EDGE Group CEO Hamad Al Marar in the statement. “Through
CMD’s proven expertise in piston engines and advanced propulsion technologies, we will accelerate the development of competitive, export-ready products that meet the most demanding requirements of our aeronautical, automotive, and marine customers.”
CMD CEO Mariano Negri, in the statement, also emphasized the ability to scale its technologies and increase international reach, “while maintaining and strengthening our Italian industrial roots.”
This new partnering is in line with EDGE’s expansion in Europe, which has seen it procure stakes in Estonian Milrem Robotics, specialized in unmanned ground vehicles, and Swiss aircraft producer Anavia in 2023.
“This acquisition is the latest step in a series of moves by EDGE to become a globally competitive manufacturer for engines and propulsion systems for domestic use (powering its growing portfolio of UAVs and missiles) and export,” said Albert Vidal, a research analyst for the London-based think tank The International Institute for Strategic Studies.
Vidal told Breaking Defense that this acquisition will provide a range of additional options to power EDGE’s UAV portfolio. EDGE Group develops a number of quadcopters, fixed-winged UAVs and loitering munitions and unmanned helicopters. It also has swarming one-way attack UAVs in its platform offerings.
The analyst also noted that this move fits into a broader push for bringing propulsion technologies into the UAE’s domestic industrial base. “The Technology Innovation Institute is also developing electric propulsion, as well as liquid and hybrid rocket engines,” Vidal said. “Meanwhile, Resource Industries recently partnered with a Czech propulsion company to localize jet engine manufacturing in the UAE. And Dubai-based Leap 71 is working with a European space firm to build reusable rockets, and with another Emirati company to develop and manufacture jet engines and space propulsion systems.”
