Turkish defense group Baykar expects to close its acquisition of Piaggio Aerospace in the spring after signing a preliminary contract transferring the Italian group’s assets. Piaggio and Baykar announced the contract signing on Monday and said the deal will close in the next few months once all remaining conditions have been met, including approval from the Italian Presidency of the Council of Ministers, which has veto powers.

On December 27, the Italian government’s Ministry of Enterprises and Made in Italy department authorized the transaction. Baykar, which produces military uncrewed aircraft, emerged as the preferred bidder for Piaggio Aerospace, which has been in receivership under Italian insolvency laws since 2018.

Baykar has not confirmed what it intends to do with Piaggio products including the Avanti II and Evo twin pusherprop aircraft. Piaggio has extensive manufacturing experience, as well as providing maintenance, repair, and overhaul services to customers including the Italian military.

Piaggio said that a consultation with trade union representatives is about to begin. During this process, Baykar is expected to present its plan for relaunching operations for the group’s Piaggio Aero Industries and Piaggio Aviation subsidiaries.

The contract was signed by Piaggio Aerospace’s extraordinary commissioners, Carmelo Cosentino, Vincenzo Nicastro, and Gianpaolo Davide Rossetti. Baykar CEO Haluk Bayraktar signed for the Turkish group.