Chris Jasper/LONDON
Swedish companies Saab and Celsius are to merge, creating a major Nordic player that will rank as one Europe's leading aerospace and defence manufacturers. The deal will see military aircraft and civil aerostructures specialist Saab buy Celsius for SKr5 billion ($600 million) cash, and seems to have been prompted by the continuing wave of European aerospace consolidation.
Celsius, a specialist in defence electronics, has been subject to takeover speculation for months, with Raytheon, DaimlerChrysler Aerospace (Dasa) and UK armoured-vehicle maker Alvis thought to have been at the head of the queue. Saab - 35%-owned by British Aerospace - joined the bidding late.
The all-Swedish move may have been a reaction to the twinning of Dasa with Aerospatiale Matra to form the new European Aeronautics, Defense and Space company. Saab's bid secures for BAe potentially productive links with Celsius. "Many of Celsius' activities are similar to some of those in BAe, which could bring increased opportunities for international collaboration," confirms Celsius president and chief executive Lars Josefsson.
Saab chairman Anders Scharp describes the merger as "a strategically appropriate and important first step in light of the international development in the defense industry". The new Saab has a turnover of Skr23 billion, based on 1998 sales - 65% coming from its defence business - and has 18,300 employees.
Source: Flight International