DaimlerChrysler Aerospace (Dasa) has beaten its European rivals to win control of Spain's CASA, the latest move in the process of restructuring the European aerospace industry.
But yesterday, the show was abuzz with speculation that Dasa is already working on a far bigger prize - a transatlantic strategic alliance, possibly with Lockheed Martin. The name of Northrop Grumman has also been touted.
Dasa chief executive Manfred Bischoff cancelled a press conference planned for the show yesterday and flew to the USA.
Dasa declined to say what his mission is. Lockheed Martin dismissed the idea of Bischoff talking to them during the trip as "making no sense" as chairman Vance Coffman is here at the show.
Before leaving for the USA, Bischoff hailed the deal as "a good signal" for the European aerospace industry.
"This merger is going to be the first major cross-border business combination in the European aerospace industry and an incentive for further steps. It will strengthen Daimle-rChrysler's global position in this field.
"Jointly, we are now in a position to take the largest cross-border step in the restructuring of the European aerospace industry and thus make an excellent contribution toward consolidating and optimising the success of major programmes such as Airbus and Eurofighter."
Though called a merger, the £7.3 billion ($11.5 billion) deal gives Dasa up to 86.5% of CASA. SEPI, the state-owned holding company which owns CASA, will hold the rest.
It also raises Dasa's stake in Airbus Industry where it holds 37.8% and CASA 4.2%, with possible implications on breaking the deadlock over turning Airbus Industrie into a fully-fledged public company.
Dasa beat off competition from BAe to win control of CASA. Aerospatiale Matra and Alenia also showed interest.
There may well be a sense of revenge as far as beating BAe to the deal is concerned. Earlier this year, the group abandoned talks with Dasa on a possible merger, in order to take over Marconi.
Bischoff, who was angered at the time over Dasa being jilted, committed to "energetically pursue" options for deals with manufacturers in Europe and the USA.
Source: Flight Daily News
