The venture will serve as the prime contractor and lead systems integrator for the multi-role combat aircraft, designed for diverse missions and intended for use by the governments of Italy, the UK, and Japan, with potential future exports.
The Commission’s review found no competition concerns in Italy’s or global markets for multi-role fighters, as the companies’ activities do not overlap significantly, approving the deal unconditionally.
The joint venture will be the prime contractor and lead system integrator for the Global Combat Air Programme aircraft.
The primary users of this aircraft will be the governments of Italy, the United Kingdom, and Japan, with potential sales to other jurisdictions or government buyers in the future.
The joint venture will be equally divided among the three companies, each receiving a 33.3% stake. The new company's headquarters will be in the United Kingdom, and the first CEO will be from Italy.
BAES (BAE Systems) is a global company in defense, aerospace, and security industries, headquartered in the United Kingdom.
JAIEC (Japan Aircraft Industrial Enhancement Co.) is a public organization representing the interests of the Japanese aerospace industry, headquartered in Japan.
Leonardo is an industrial and technological company in the aerospace, defense, and security sectors, headquartered in Italy.
Earlier reports indicated that in December 2022, Japan, the United Kingdom, and Italy announced the creation of the Global Combat Air Programme (GCAP) to develop a next-generation jet aircraft by 2035, combining the British Tempest project with the Japanese FX program.
The trilateral partnership emerged after France, Germany, and Spain proposed a similar plan to create a military aircraft as part of a broader European effort to strengthen security amid Russia's invasion of Ukraine.
In May 2025, the European Union agreed to create the Security Action for Europe (SAFE) instrument, which provides for borrowing up to €150 billion ($171 billion) for investments in the defense industry of member states.