Tim Ripley
British Aerospace and Lagardere have re-affirmed their missile alliance after French moves to privatise Aerospatiale appeared to threaten the foundations of Matra BAe Dynamics (MBD).
At Farnborough yesterday, MBD chief executive Fabrice Bregier announced that detailed negotiations are now under way to link his company with Aerospatiale Missiles to create the world's second largest missile house, rivalling American giant Raytheon.
The combined annual turnover of the merged company, which has yet to be named, will be $2.4 billion a year.
"It is the clear intent of BAe and Lagardere to merge two missile companies; the modalities are being discussed and will be complete in 1999," says Bregier.
"The Aerospatiale-Lagardere merger is a major event for the development of our company," he says. "It opens the way for the merging of the two main missile prime contractors in Europe: MBD and Aerospatiale Missiles."
Roger Hawksworth, Bregier's deputy and "BAe's man in MBD,", called the Aerospatiale-Lagardere initiative "very helpful".
"We will continue to look to our European partners - notably Alenia, GEC, Saab and Thomson - for ways of consolidating the European missile industry [into one company], to make it the major component of the future European Aerospace and Defence Company."
Bregier says MBD is still trying to attract GEC and Alenia's defence joint venture into the orbit of their new missile company. "I am confident we are the best partner for their future."
Source: Flight Daily News
