Alcatel and EADS are to open talks on a possible merger or alliance between the space and satellite operations of the two companies. Alcatel chairman Serge Tchuruk believes merging Alcatel Space with EADS Astrium would benefit the whole satellite industry -…but warns that there are still obstacles.
There would be a "considerable amount of cost-saving from a rapprochement," he says, adding: "But whether Brussels will agree, whether we will find a management structure...we have to see." Tchuruk says his company does not want to leave the satellite sector, hinting that a joint venture between Alcatel and Astrium may be the preferred option.
French finance minister Francis Mer is encouraging more "strategic moves" between space companies, Alcatel says, but the finance ministry says only that "these are discussions between two companies; we'll let them get on with it and see what happens".
Alcatel and EADS are also under pressure from defence minister Michèle Alliot-Marie. The defence ministry says that if no means are found to encourage a "closer relationship" between Astrium and Alcatel, "there is a strong risk that both companies collapse". The ministry adds that "if we want to maintain France's space potential, we have to clear the path for these two companies to reach an agreement".
Alcatel Space reported sales of €3 billion ($3.3 billion) and an operating profit of €135 million in 2002, ahead of EADS Space, which produced €2.2 billion sales and a loss before tax and interest of €270 million. While the merged company would rival Lockheed Martin Space Systems (2002 sales of $7.3 billion), it could also spark competition concerns.
Source: Flight International