Riyadh – Sharikat Mubasher: Saudi Arabia’s Public Investment Fund is in advanced negotiations to invest in Leonardo SpA’s aerostructures division after months of discussions.

Bloomberg reported that the proposed deal would create a joint global aerostructures unit, with talks between the Italian defense group and the Saudi sovereign wealth fund said to be largely finalized.

Representatives for Leonardo and Italy’s government, which holds a 30% stake in the company, declined to comment, while the Saudi fund did not immediately respond.

The partnership would give Saudi Arabia greater access to advanced manufacturing as part of its broader economic diversification strategy. For Leonardo, the investment offers financial relief for an aerostructures unit that has struggled with losses linked to Boeing’s slowdown in 787 Dreamliner production.

Bloomberg previously reported that the agreement could lead to a new civil aviation manufacturing plant in Saudi Arabia, as well as potential Saudi participation in a next-generation fighter jet program.