By Levent Kenez
STOCKHOLM (Nordic Monitor) — The Turkish firm Baykar, a defense contractor owned by the son-in-law of Turkish President Recep Tayyip Erdogan, Selçuk Bayraktar, signed a preliminary agreement to acquire Italy’s Piaggio Aerospace on January 27, marking a significant step in its international expansion. The deal, approved by Italy’s Ministry of Enterprises and Made in Italy in December 2024, involves the transfer of Piaggio Aero Industries and Piaggio Aviation’s business operations to Baykar. Pending additional approvals, including from the Italian Council of Ministers, the transaction is expected to conclude by spring.
According to an analysis by Turkey’s state-run Anadolu news agency, Baykar’s acquisition of Piaggio Aerospace represents a strategic response to long-standing trade and export barriers faced by Turkey in the defense sector. Unlike conventional industries, the defense industry requires navigating complex regulatory frameworks and diplomatic relationships, often influenced by geopolitical considerations.
Anadolu reported that Turkey has frequently encountered embargoes which restrict the export of its defense products, even when such products are developed domestically. One significant hurdle has been the insistence of some countries on local manufacturing as a precondition for procurement. By acquiring an EU-based company like Piaggio Aerospace, Baykar aims to bypass these restrictions. Defense products manufactured in Italy can be more readily integrated into European markets, eliminating legal and logistical obstacles tied to non-EU imports.
This acquisition also aligns with Turkey’s broader strategy of overcoming embargoes through domestic innovation and international partnerships. While Turkey has successfully built a self-sufficient defense industry, this deal allows Baykar to complement its production capabilities with improved access to European customers.
Nordic Monitor previously reported that Erdogan tied the Turkish parliament’s approval of Sweden’s NATO membership to Canada lifting its arms embargo on Turkey. Speaking to pro-government journalists during his return trip from Hungary on December 19, 2023, Erdogan said US President Joe Biden had suggested resolving congressional reluctance to sell F-16 fighter jets to Turkey in exchange for Sweden’s NATO accession. However, Erdogan added another condition: the removal of Canada’s restrictions on defense-related exports to Turkey, including crucial optical equipment used by Baykar.