Spanish defence group Indra's chair, Ángel Escribano, resigned abruptly after clashing with the government over a planned acquisition of his brother's company, EM&E. Escribano's departure, effective immediately, follows months of controversy surrounding Indra's aborted bid to buy EM&E, a smaller peer wholly owned by the Escribano brothers. The government, which holds a 28% stake in Indra, intervened, requesting the conflicts be resolved, leading to the deal's collapse last month.

Indra's CEO, José Vicente de los Mozos, led the push for the combination, arguing it would propel the Spanish group into the top tier of European defence manufacturers, competing with giants like Rheinmetall and BAE Systems. EM&E's 14.3% stake in Indra adds significant complexity. Third Point, a US hedge fund, had bet on the deal, seeing it as a way to capitalise on EU defence spending surges driven by the Ukraine war, but declined to comment on Escribano's exit.

The resignation is a major blow to Indra's strategic direction and investor confidence.