Red Cat Holdings said its Oct. 19 proposal to buy Austrian engine maker Steyr Motors for €39 a share would add marine-engine and production capacity to its uncrewed-vessel strategy.
SMOT Acquisition GmbH, an Austrian subsidiary owned entirely by Red Cat, would offer to buy every Steyr share. Red Cat said the €39 price was 28.9% above Steyr’s Oct. 16 Xetra close and 27.3% above its 30-day volume-weighted average price. Shareholders would receive cash for shares they tender.
Regulators in Austria, Italy, Australia and the United Kingdom must approve the deal. Shareholders must tender at least half of Steyr’s stock and one additional share. B&C Holding Österreich GmbH, with about 15% ownership, has committed its full stake.
Steyr says military vehicles and boats use its engines, which also serve as auxiliary power units in main battle tanks and locomotives. It also makes engines for uncrewed surface vessels. Red Cat ties the deal to Blue Ops and says Steyr’s Austrian headquarters, manufacturing sites and research and development work would stay in place if the deal closes.
Steyr Motors said it intends to support the proposal only after a favorable review of the final legal and economic terms and adoption of required resolutions by its management and supervisory boards. It has not announced a final board endorsement. Steyr has pointed to access to capital, customers and international markets as potential benefits of the transaction.
Red Cat withdrew an earlier nonbinding proposal in July 2026 before negotiations restarted. The company expects a first-half 2027 closing if the conditions are met. The tender window is expected to open after publication of the offer document and close Dec. 18 at 11 a.m. ET (16:00 UTC).
