EDGE Group, the defence conglomerate based in the United Arab Emirates (UAE), has put forward a proposal to acquire a controlling share in Italy’s Costruzioni Motori Diesel (CMD).
The companies have not released specific details about the shareholding, however, media reports indicate that EDGE intends to acquire an 80% stake in CMD.
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Representatives from both organisations met at CMD’s production plant in Atella, Basilicata, to sign a preliminary settlement agreement on 13 May 2026.
EDGE was represented by Rodrigo Torres, President and CFO Group, while CMD’s majority shareholder and founding family descendant, Mariano Negri, attended on behalf of the Italian company.
CMD, which has more than 220 employees, focuses on advanced propulsion systems for automotive, marine, and aeronautical sectors in both domestic and international markets.
The company reported a turnover of approximately €40m ($46.5m) in 2025, up from €38.5m in 2024.
The proposed acquisition would combine CMD’s production background and local base with EDGE Group’s global presence and financial capacity.
Both companies have described the agreement as an opportunity to integrate strengths and pursue common objectives. This includes developing competitive products for automotive, aeronautical, and marine sectors, with manufacturing operations remaining in Europe.
EDGE Group managing director and CEO Hamad Al Marar said: “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.
“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.”
The transaction is subject to standard closing conditions and the required regulatory and governmental approvals, with completion expected by the end of the year.
During this period, CMD will continue to operate under its current management, ensuring continuity for clients, suppliers, and employees.
Upon completion, CMD’s current shareholders will maintain a significant minority stake and management roles, working with EDGE Group to develop an integration plan aimed at maximising industrial synergies, safeguarding proprietary knowledge, and expanding the propulsion product portfolio across all sectors.
The deal will also provide CMD with access to new investment, entry into international markets, and expanded production capacity and research in conventional and next-generation propulsion systems.
CMD Group CEO Mariano Negri said: “With EDGE’s support, we will be able to scale our technologies, expand our international reach, and invest further in innovation, while maintaining and strengthening our Italian industrial roots and our commitment to quality, reliability, and technological excellence.”
