The French government, anxious to kick-start the restructuring of its aerospace industry, is on the verge of finalising the details of the merger between Aerospatiale and Dassault Aviation. It also plans to move quickly towards privatisation of the resulting group.
Approval for the merger, by a newly created state privatisation committee is expected in a "few weeks", leading to final approval of the Government's plan for merging the two companies by June, say senior sources.
According to a common statement issued by the ministries of defence and economics, the merger would see the companies link resources in areas such as research, administration and purchasing, while new divisions will be created for fighter and business aircraft, transport aircraft (which may be drawn into the newly formed Airbus company) , space and defence, helicopters and maintenance will be set up (Flight International, 1-7 January, P15).
Major questions remain to be resolved, however, including serious differences over the valuations of the two companies. Aerospatiale's bank, Lazard Frères, values the state-owned company at around Fr25 billion ($5 billion) and Dassault Aviation at a little over Fr10 billion, but Dassault's bank, Paribas, puts a value of Fr12 billion on both. The Government's bank, Société Générale, is said to favour the Lazard evaluation. Such issues will also affect how much of the combined grouping remains in the hands of the Dassault family, including company boss Serge Dassault,and how much will be held by the state.
Once the merger is achieved, it is likely that the group will go on to be privatised by the end of the year. Speculation has also surrounded a possible further merger with Thomson-CSF, depending on its own privatisation. The Government had backed a sale to Lagardère before being over- ruled by the privatisation committee.
Another option is for the Government to seek a flotation for its 58%stake in the defence-electronics giant. A decision is believed to be imminent.
Source: Flight International
