Alan George/BRUSSELS
The European Union's (EU) competition authorities are set to give approval to the merger of DaimlerChrysler Aerospace (Dasa), Aerospatiale Matra and CASA in mid-May, subject to conditions that could see them shed certain space activities.
Approval would clear the way for the creation of European Aeronautic, Defense and Space (EADS), and its planned mid-year flotation. The newly agreed EADS-Finmeccanica joint venture also requires approval, but will be dealt with as a separate case.
Sources say the competition directorate-general (DG) has identified concerns over composite materials used in satellite manufacture, particularly in the areas of antenna reflectors and central tubes, the main structural arms of satellites around which payloads are attached.
The EADS partners last week formally submitted proposals to allay EC concerns by reorganising their space operations. Manfred Bischoff, EADS co-chair elect, says they have offered to either dispose of the space activities, form a joint venture or agree a technology licensing deal. If the proposals are well-received, as seems likely, the merger is likely to be approved under a six-week fast-track procedure on 11 May, when the period expires.
The EADS companies had anticipated concern over the merger's impact on the European missile seeker-head sector, and made contingency plans to satisfy Brussels. Space has now emerged as the only area of serious regulatory concern.
The EC's competition DG was formally notified of the EADS merger in late February, with the companies hoping for approval within one month after a so-called first phase enquiry. By late March, however, the regulators had not completed their investigations and extended the initial enquiry by a month, to 27 April. The six-week fast-track period began with this extra month of the enquiry.
Source: Flight International
