Julian Moxon/PARIS
AEROSPATIALE AND Daimler-Benz Aerospace (DASA) have formally signed up for the twin merger, which will create Europe's biggest satellite and missile businesses.
"The deal brings together the satellite and missile components of the two companies to form European Satellite Industries [ESI] and European Missile Systems [EMS]. ESI will be based in Munich, with a German chairman and French co-chairman, while EMS will be headquartered in France, with a French chairman and German co-chairman.
Each company, is expected to be founded, in the third quarter of 1996. ESI will control a German subsidiary in Friedrichshafen and Ottobrunn - taking advantage particularly of DASA's radar activities in its Dornier Satellite Systems subsidiary - as well as a French subsidiary in Cannes.
EMS will have its headquarters in the Paris region, and will also control subsidiaries in both partner countries, with sites in Bourges, Chatillon, Munich, Nabern and Schrobenhausen.
"What we are creating are innovative organisational structures, which overcome the existing fragmentation of our industrial capacities and do justice to the intended political integration of Europe," says DASA president Manfred Bischoff. "This is an essential prerequisite to keeping up our s competitiveness in the future."
The deal took two years to forge, not least because of German difficulties over funding a large enough share in the French Helios 2 and Horus observation satellite programmes. These were resolved at the recent Franco-German summit, which followed the successful European Space Agency ministerial meeting in November.
Aerospatiale president Louis Gallois puts the likely turnover of the combined satellites business at "around Fr6 billion" ($1.2 billion) for 1996/7, while the turnover of the missiles alliance will be worth some Fr8 billion, he says, adding: "This makes them both the number one in Europe."
The agreement still faces a series of hurdles, including final authorisation from the French Government, due diligence studies of each company's current obligations, and approval by the European Commission. Gallois has no doubts about the outcome, however.
Further rationalisation of Europe's satellite and missile businesses is now likely, Aerospatiale having already made it clear that it would like payload supplier Alcatel to join the ESI alliance. Gallois adds, that he also hopes for a positive outcome to the current talks on a missile merger, between Matra and British Aerospace, suggesting that it may then be possible to bring the two groups together.
Source: Flight International
