EDGE Group has completed its acquisition of a controlling stake in CMD, the Italian engine manufacturer, closing the deal in Rome. EDGE plans to use CMD as the base of a European propulsion hub, with unmanned aerial systems engines as the immediate priority and talks under way on large-volume orders.
The completion follows an agreement the two companies signed in May 2026 at CMD’s plant in Atella, in Italy’s Basilicata region. At signing, the UAE defence group struck a deal to acquire 80% of CMD as part of a wider European push. CMD’s existing shareholders keep a significant minority stake and will remain in key management roles under the new ownership.
CMD was founded in 1989 by the Negri family and is led by Chief Executive Officer Mariano Negri. The company brings more than 35 years of piston-engine manufacturing experience, designing and developing propulsion systems for automotive, marine and aeronautical use. It is known for precision engine components and powertrain technology, the capabilities EDGE now plans to apply to unmanned aircraft engines.
EDGE Managing Director and Chief Executive Officer Hamad Al Marar said completing the deal “takes us from agreement to delivery in building a highly capable European propulsion hub”. He added that the two companies “will accelerate the development of competitive, export-ready products for our customers”.
EDGE plans to invest heavily in CMD, expanding manufacturing capacity and speeding up research and development (R&D). The investment will also support CMD’s work on conventional and next-generation propulsion, as EDGE expands its manufacturing base in Europe through the Atella plant and its EDGE Europe structure.
Beyond drones, EDGE is discussing the use of CMD’s engines at sea with Abu Dhabi Ship Building (ADSB), its naval shipbuilding arm. CMD will keep working with automotive partners and plans to grow that business, with Al Marar citing unmanned, maritime and automotive markets as the sources of demand.
The acquisition follows the EDGE Europe model the group launched in Paris in June 2026, and CMD is the group’s propulsion asset within that European structure. During a visit to CMD that same month, EDGE signed a memorandum of understanding (MoU) with the Basilicata Region covering industrial cooperation, knowledge exchange and talent development.
CMD’s engine work sits alongside propulsion activity elsewhere in the group, with EDGE’s POWERTECH contributing aircraft engine and propulsion development for unmanned platforms under a production MoU signed with Morocco in October. That MoU sets out potential Moroccan production of small arms and aircraft engines, with the partners now identifying opportunities with Moroccan companies.
The CMD deal also follows EDGE’s completed acquisition of Brazilian aerospace engineering company AKAER on 4 September 2026. Both transactions extend the overseas acquisitions and investments EDGE has used to build its supply chain since the group’s formation in 2019.
Negri described the partnership as combining “CMD’s engineering expertise with EDGE’s industrial strength”. EDGE and CMD will now draw up a joint integration plan aimed at getting the most from the combination while protecting critical know-how, as the large-volume drone engine talks continue.
