British Aerospace is in advanced negotiations to take a stake in Germany's STN Atlas Elektronik, in a renewed attempt build up its naval-systems business.
BAe confirms that it is in discussions to take a share in the STN Atlas business, which has come onto the market following the collapse of its parent the German shipping group Bremer Vulkan. Details of the deal have not been confirmed but are understood to involve BAe taking a stake of up to 49%, with the remainder being taken by German industrial and defence group Rheinmetall. Other German groups are also been linked with a possible deal.
Bremen-based STN Atlas em ploys around 4,500 and has annual sales of around DM1.5 billion ($1billion), of which at least half are in naval systems for submarines, ships and weapons. The business also has a small (DM100 million) aerospace operation, which manufactures unmanned air vehicles. BAe has been looking for new ways to develop its own Sema naval systems business after losing to GEC in the bid to take over the UK warship yard VSEL two years ago.
Source: Flight International