EDGE Group Completes Takeover of Italian Engine Maker CMD and Targets Drone Engine Volume

UAE defence group EDGE has completed its acquisition of a controlling stake in CMD, the Italian piston-engine maker based in Atella, turning a May agreement into a closed deal. EDGE announced the completion on 26 October 2026 and said it is already in talks on large-volume engine orders for its unmanned aerial systems.

The signing took place in Rome. CMD’s existing shareholders keep a significant minority stake and stay in key management roles, according to EDGE, which did not publish the size of its holding in the completion announcement.

Agreed in May, completed in October

The wording matters here. On 14 May 2026 EDGE signed an agreement at CMD’s plant in Atella, Basilicata, to acquire a controlling stake, subject to customary closing conditions and regulatory and government approvals. Breaking Defense reported at the time that closing was expected by the end of 2026. The October announcement says the acquisition has now been completed, so the headline claim of a takeover holds, but only for a stake EDGE describes as controlling.

One number circulated early. Reuters, as quoted by MarketScreener, put the stake at 80 percent when the deal was signed. Neither EDGE’s releases nor Breaking Defense confirm that figure, so treat it as a press report rather than a company disclosure.

Drone engines come first

EDGE said supplying engines for its unmanned aerial systems is an immediate priority and that discussions on large-volume orders are under way. No customer, quantity or value was given. In May, Reuters quoted EDGE as saying its immediate focus was aero engines, where CMD’s piston expertise matched its existing portfolio.

The group also said it is discussing CMD’s high-performance engines for naval use with its shipbuilder, Abu Dhabi Ship Building (ADSB), and other partners. CMD will keep serving its automotive customers and plans to grow that business, according to EDGE.

EDGE plans to invest heavily to expand manufacturing capacity and speed up research and development, without giving an amount. The two sides will draw up an integration plan meant to protect CMD’s critical know-how.

A propulsion hub inside EDGE Europe’s playbook

EDGE chief executive Hamad Al Marar said the completion “takes us from agreement to delivery in building a highly capable European propulsion hub.” CMD chief executive Mariano Negri called the partnership a significant milestone for the region, its facilities and its people.

The deal follows the approach EDGE outlined when it launched EDGE Europe in Paris in June 2026: build in Europe, hire European staff and work with established firms. In June EDGE also signed a memorandum of understanding with the Basilicata Region covering industrial cooperation, knowledge exchange and talent development.

IISS analyst Albert Vidal described the move in May as part of EDGE’s effort to become a globally competitive maker of engines and propulsion systems. That reading is analysis, but it fits the pattern of EDGE buying component and subsystem suppliers rather than relying on imported powerplants.

CMD Company Profile

CMD designs, prototypes and develops propulsion systems for automotive, marine and aeronautical use. EDGE cites more than 35 years of piston-engine experience. Wikipedia reports that the Negri brothers, Giorgio and Mariano, bought back the 67 percent stake held by China’s Loncin Holdings in January 2026, which would have left them with full ownership before the EDGE deal; that detail rests on a single source.

EDGE and CMD FAQ

Has EDGE completed the CMD acquisition?

Yes. EDGE announced completion on 26 October 2026, following the 14 May 2026 agreement.

How much of CMD does EDGE own?

EDGE says it holds a controlling stake and that existing shareholders keep a significant minority. The exact percentage is not disclosed; Reuters reported 80 percent in May.

What did EDGE pay?

The price has not been disclosed.

What will CMD build for EDGE?

EDGE says engines for its unmanned aerial systems are an immediate priority, with large-volume orders under discussion. Naval applications are being discussed with ADSB.

Where is CMD based?

Atella, in the Basilicata region of southern Italy.