The long-expected purchase of EADS missile firm LFK by MBDA finally came to pass at the show yesterday.
A "master understanding" was signed by MBDA chief executive Marwan Lahoud and Tom Enders, EADS Defence and Security Systems chief executive.
Regulatory issues have still to be addressed and when they are the purchase will come into retroactive effect from 1 January 2005.
Moves
Even before the ink was dry, MBDA was mulling its next moves in the industry. It is exploring a strategic alliance with Diehl subsidiary BGT specifically to address the German missile market.
The LFK deal does not affect the shareholding split within MBDA, where BAE Systems and EADS hold 37.5% each and Finmeccanica 25%.
"This master understanding is the fundamental first step towards completing the consolidation of the European missile industry and to developing a more comprehensive strategy for ensuring Germany's guided weapons needs are met for the long term," said Lahoud.
"Integrating LFK not only reinforces MBDA's leading position in the guided weapons sector but also underpins our strategy to further develop our co-operation with the USA."
Delighted
Said Enders: "I am delighted that we have now achieved this significant step to integrate Germany's number one missile system group within the largest and most successful missile house worldwide.
"This is good news for LFK, for MBDA and, not least, our German customer."
The deal marks a further step in the integration of the European missile industry, a process initiated by the creation of MBDA in 2001 by the group's three shareholde
Source: Flight Daily News