BAe joins take-over of German naval group

British Aerospace confirms that it has signed to join a consortium formed to take over German defence-electronics grouping STN Atlas Electronik, in a strategic move designed to increase its naval-systems business.

BAe is joined in the consortium by the Rheinmetall industrial group, with financial backing from utility company Badenwerk. Under the agreement, BAe says that it will pay DM270 million ($180 million) in cash for a 49%stake in STN Atlas, on the market following the failure of its previous owner, the Bremer Vulkan shipping business.

STN Atlas made a pre-tax profit of DM32 million in 1996 on sales of DM1.45 billion, the bulk of which is in naval systems and weapons integration.

Source: Flight International