Further consolidation of major companies in the European aerospace sector must await major shifts in the global market, says Thales chief executive Denis Ranque.
The status quo of BAE Systems, EADS and Thales will remain, Ranque says: "The split of Europe into three will be there for some time." But he adds: "If we had a unified European defence or transatlantic market, it would be different."
Ranque dismisses suggestions from some areas that a Thales/EADS merger will be the next step in European consolidation.
Ranque says: "I'm not a strong believer in being bigger, but in being better. A company can grow too far or too fast." Thales has doubled in size over the last four years.
Companies have consolidated further than governments, with few cross-border defence organisations, and few multinational procurement bodies, most linked to specific development projects.
Maintaining sufficient competition is also desirable, says Ranque. "This is still a business with few customers so we need to do what governments want and the UK government wants competition."
Thales, viewed as the number two UK defence company by the UK Ministry of Defence, is engaged in several major competitions including the CV(F) aircraft carrier, ground based air defence, Watch-keeper intelligence system, and Future Strategic Tanker Aircraft.
Meanwhile, financially struggling Alcatel and Dassault family trust GIM Dassault have denied reports that Alcatel will sell its 15.8% stake in Thales to GIMD,which has a 5.8% holding. Agreements signed when Thales was privatised (as Thomson-CSF) in 1998 bar either shareholder from selling its stake until July next year, when the other will get first refusal.
Source: Flight International
