On August 19, 2025, a major shift in the European defense landscape took place as Israel’s SK Group acquired full ownership of ELBO, Greece’s leading manufacturer of military and civilian vehicles. The move, reported by multiple outlets including Greek Reporter, marks a decisive moment for both companies and the broader defense industry in Europe. With the purchase of the remaining shares, SK Group now stands as the sole owner of the Thessaloniki-based corporation, cementing its first operational base on the continent and signaling ambitious plans for the future.
ELBO, also known as ELVO in some reports, has long been at the heart of Greece’s defense sector. Its legacy includes the production of the iconic Leonidas armored personnel carriers and the Mercedes-Benz G-Class jeeps (specifically the G-Wagen W462 ELBO 1988–2005), both of which remain in active service with the Hellenic Army. Beyond these, the company has built Steyr trucks, a variety of specialized vehicles, and buses that support civil protection and public services. Perhaps most crucially, ELBO operates a certified production and assembly line for Leopard 2 HEL tanks—a capability that’s regarded as strategically vital given Greece’s extensive armored vehicle fleet.
SK Group’s acquisition didn’t happen overnight. Back in 2021, the Israeli conglomerate, together with the company Plasan, had already taken a majority stake in ELBO, acquiring 79% of the shares. This latest deal, finalized on August 19, 2025, brings the remaining shares under SK Group’s control, as reported by Greek Reporter and confirmed in subsequent coverage on August 20. The acquisition is more than just a business transaction; it’s a strategic play to establish a robust European hub for defense manufacturing and exports.
Ronen Hamudot, Vice Chairman of SK Group, didn’t mince words about the significance of the deal. In an official statement, Hamudot said, “Acquiring full ownership of ELBO marks a significant milestone in our strategic growth plans and deepens ties with Greece.” He continued, “We see tremendous potential in ELBO’s infrastructure and legacy, and we are committed to transforming it into a leading global hub for production and export. This investment reflects our long-term vision to strengthen Greece’s defense industry and expand SK Group’s operational footprint in Europe as a global leader in the land defense sector.”
The company’s plans for ELBO are ambitious. SK Group intends to leverage its extensive expertise in defense, experience in restructuring privatized factories, and a long-standing commitment to technology transfer. The goal? To turn ELBO into a state-of-the-art center for advanced vehicle manufacturing and exports. The group aims to introduce advanced production methods and foster innovation, positioning the Thessaloniki facility as a launchpad for serving both Greece’s domestic requirements and a growing roster of international clients.
For Greece, ELBO’s history is one of steady partnership with the military and public authorities. Over more than half a century, the company has earned a reputation for reliable production and assembly across a range of military, civilian, and special-use vehicles. Its facilities and know-how have been integral to the country’s defense readiness and technological capabilities. The certified line for Leopard 2 HEL tanks, in particular, is seen as a linchpin in maintaining and upgrading Greece’s armored forces.
Yet, as with many high-stakes deals involving national assets, the acquisition has not been without controversy. The left-wing New Left party in Greece issued a scathing critique on August 19, 2025, denouncing the transaction as a “sell-out” of strategic national industry. In a sharply worded statement, the party accused Prime Minister Kyriakos Mitsotakis’ government of aligning too closely with Israel, especially against the backdrop of the ongoing war in Gaza. “It is not a simple sell-out, but another act of complicity of the (Kyriakos) Mitsotakis regime with the genocide in Palestine,” the party claimed. Their statement went further, arguing that transferring ELBO to foreign ownership undermines Greece’s security and erodes its technological independence. The New Left warned that this sale fits into a broader pattern of privatizing critical public assets, concluding that surrendering control of Greece’s most important defense manufacturer is “nationally detrimental.”
This strong opposition underscores the broader debate swirling around the deal. On one hand, SK Group and its supporters frame the acquisition as a win for innovation, economic growth, and Greece’s integration into global supply chains. The investment promises new technology, jobs, and a reinvigorated industrial base. On the other, critics worry about the loss of national control over a key defense asset, raising questions about sovereignty, security, and the risks of relying on foreign ownership in such a sensitive sector.
From a business perspective, the acquisition positions ELBO for growth in advanced land defense capabilities, local manufacturing, and international collaboration. SK Group’s track record in restructuring and revitalizing industrial plants is well known, and the company has stated its intention to apply these lessons in Thessaloniki. The hope is that ELBO will not only serve Greece’s needs but also become a major exporter of military and specialized vehicles across Europe and beyond. According to Greek Reporter, this move secures a foothold for SK Group in the European market and underlines the company’s long-term commitment to both the Greek economy and the broader defense sector.
For the Greek defense industry, the deal arrives at a time when modernization and international partnerships are increasingly seen as necessary to keep pace with technological change and shifting security dynamics. The presence of a major international player like SK Group may bring new opportunities for collaboration, research, and development, as well as access to global markets that were previously out of reach for a domestically focused company like ELBO.
Still, the political debate is far from settled. As Greece navigates its relationships with key allies, including Israel, and weighs the benefits and drawbacks of foreign investment in strategic sectors, the ELBO acquisition will likely remain a touchstone for discussions about national identity, economic policy, and the future of the country’s defense capabilities. The coming months and years will show whether SK Group’s promises of growth and innovation can win over skeptics—or whether concerns about sovereignty and security will continue to cast a shadow over the deal.
For now, ELBO stands at a crossroads: newly under the banner of SK Group, with the weight of history on its shoulders and the eyes of both supporters and critics fixed firmly on what comes next.
