Baykar has signed a preliminary contract with Piaggio Aerospace for the transfer of the business complexes, according to a statement on Monday, a month after the Turkish drone maker announced it had acquired the Italian aviation giant.
The deal includes facilities of Piaggio Aero Industries and Piaggio Aviation – the two companies operating under the Piaggio Aerospace brand, a statement by the Italian company said.
Piaggio Aerospace – unconnected to Vespa scooters maker Piaggio – had been under government-controlled special administration since filing for protection from creditors in 2018.
Baykar's offer for the company had been preferred over two other final and binding bids from international players, Italy's Industry Ministry said last month.
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 agreement was signed by Haluk Bayraktar, the CEO of Baykar, and Piaggio Aerospace's extraordinary commissioners Carmelo Cosentino, Vincenzo Nicastro and Gianpaolo Davide Rossetti, the statement said on Monday.
"The closing of the transaction is expected in spring once a series of conditions have been met, including authorization from the Italian Presidency of the Council of Ministers."
In the coming weeks, a consultation with trade union representatives is also scheduled, and Baykar will present its plan for the relaunch of the business complexes of the two Italian companies.
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 offers maintenance, repair and overhaul services and is renowned for its contributions to Italy's technological infrastructure.
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 in 2023.
About 90% of its revenue comes from foreign markets. Its exports hit a record $1.8 billion in 2023, up from $1.2 billion the previous year.
The company has 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.
