The South African Government has chosen BAE Systems as the strategic equity partner for Denel's aerospace and ordnance divisions (Flight International 10-16 October). BAE is expected to take a 20% stake.
Public enterprise minister Jeff Radebe says BAE was selected because it offered a "greater number of commercial and industrial synergies", given that both companies have broad-based defence and aerospace capabilities in the land, sea and air markets. Talks, to be completed by March, will centre on producing a joint business plan.
Denel's low earth orbit satellite launch business, Houwteq, will be placed outside the new company, but its DATAM civil aircraft maintenance division will be included.
Radebe says the Rooivalk attack helicopter programme will be part of the new company, although its future is being reviewed.
South Africa has also decided the future of other Denel businesses:
• Snecma's Turbomeca division has been selected as an equity partner for Denel Airmotive.
• Swartklip, part of Denel's ordnance division, will be excluded from the BAE venture, with Pains Wessex Defence, also of the UK, selected as an equity partner.
Source: Flight International
