Steyr Motors and Red Cat Sign Takeover Agreement Protecting Austrian Production
Steyr Motors and Red Cat have signed a takeover agreement protecting Austrian manufacturing for three years and employees for two years.
Austria, October 21, 2026. Austrian defense engine manufacturer Steyr Motors AG has signed a formal Business Combination Agreement with US defense technology company Red Cat Holdings and its Vienna-based acquisition subsidiary, SMOT Acquisition GmbH, establishing binding commitments to protect Steyr Motors' Austrian operations and workforce.
The agreement, unanimously approved by Steyr Motors' Management Board and Supervisory Board, follows Red Cat's October 19 announcement of a voluntary public takeover offer at €39 per share.
Under the newly signed agreement, Red Cat has committed not to relocate Steyr Motors' headquarters, manufacturing operations, or research and development activities from Steyr, Austria, for three years following settlement of the takeover offer.
The US company has also agreed to employment protections lasting two years, including commitments not to initiate or seek redundancies for operational reasons. Existing collective bargaining agreements and employee rights will remain in place.
Austrian Manufacturing to Remain Central
Steyr Motors develops and manufactures high-performance engines used in military vehicles, naval platforms and auxiliary power units for main battle tanks. Its propulsion technologies are also relevant to Red Cat's growing portfolio of autonomous maritime systems.
Red Cat intends to further develop the Austrian facility as a manufacturing and research center, potentially expanding its role in propulsion systems for unmanned surface vessels.
The agreement does not envisage changes to Steyr Motors' existing Management Board. Red Cat intends to seek representation on the Supervisory Board proportional to its eventual ownership stake, without changing the board's size.
Rolf Wirtz, Chairman of Steyr Motors' Supervisory Board, said the negotiated protections reflect the importance of the company's industrial future in Austria, beyond the financial terms of the proposed acquisition.
Steyr Motors CEO Julian Cassutti described the agreement as an important milestone that could support technology development and access to international markets.
Acquisition Subject to Regulatory Approval
The proposed cash offer remains unchanged at €39 per share, with a minimum acceptance threshold of 50% plus one share. Austrian shareholder B&C Holding Österreich GmbH, which holds approximately 15% of Steyr Motors, has already committed to accepting the offer.
The formal offer document is expected to be published before November 15, with the acceptance period targeted to conclude on December 18, 2026.
Completion remains subject to foreign investment approvals in Austria, Australia, Italy and the United Kingdom, with the necessary clearances expected by June 30, 2027.
The agreement also permits potential subsequent restructuring measures, including delisting or a squeeze-out of remaining minority shareholders, subject to applicable legal requirements.
The acquisition has not yet been completed, and no new defense procurement contracts or production orders have been announced as part of the agreement.
