Madrid, March 22, 2026 – A power struggle between the Spanish government and the Escribano family is derailing a planned merger between defense technology firm Indra and Escribano Mechanical & Engineering (EM&E), potentially hindering the creation of a national defense champion. The collapse of the deal, which aimed to consolidate Spain’s defense sector and capitalize on increased European military spending, stems from a dispute over a conflict of interest involving Indra’s president, Ángel Escribano.
The conflict came to a head on Wednesday evening when Belén Gualda, president of the state-owned holding company SEPI, issued a letter blocking any corporate operation with Escribano’s company. The SEPI cited concerns that the conflict of interest had not been resolved. Hours later, the Escribano brothers announced they were withdrawing their company from any integration plans, effectively ending the merger talks.
According to reports, the Spanish government, through the SEPI and the Department of Economic Affairs, had been pushing for a specific direction for Indra and had even signaled to Ángel Escribano that his position as president could be at risk. The Escribano family had been actively pursuing the merger for over a year, despite not participating in the board meetings where the operation was debated, vigorously defending the integration.
The situation has fractured Indra’s board of directors, dividing it into two camps. SEPI is supported by SAPA, a Basque company holding a 7.83% stake in Indra, and consistently aligns with the state-owned entity. On the other side stands Amber, a fund controlled by Joseph Oughourlian, the majority shareholder of the Prisa Group, which holds a 7.24% stake in Indra.
The failed merger underscores the challenges facing large-scale corporate consolidation in Spain, following a similar breakdown in the attempted merger between BBVA and Sabadell last October. The planned integration of Indra and EM&E was intended to create a leading player in the terrestrial defense sector, capable of leveraging the influx of funds resulting from the European rearment initiative.
Ángel Escribano was appointed president of Indra in January 2025, succeeding Marc Murtra, who moved to Telefónica. Prior to his appointment, the Escribano family had already increased their stake in Indra from 8.3% to 14.3%, becoming the company’s largest private shareholder. Javier Escribano, Ángel’s brother, assumed the presidency of EM&E upon Ángel’s appointment to Indra.
An emergency board meeting is scheduled for Wednesday, March 25, where the future of Ángel Escribano’s leadership will likely be determined. The outcome of this meeting will be crucial in charting the course for Indra and its role in the evolving Spanish defense landscape.
