Actions spoke louder than words on Tuesday when Victor Rice, the chief executive of Varity, visited Lucas Aerospace here at Farnborough before the merger of the two companies is complete.

Although Lucas Aerospace has been assured of the new company's commitment to the industry, staff were pleased to see Rice.

Lucas Industries is due to hear officially this Friday that it is to merge with American firm Varity to create Lucas Varity.

 

Principle

Some 98% of shareholders from both companies have agreed in principle to the deal and are awaiting agreement from the High Court in London; then it will be official.

For Lucas Aerospace, seen in Hall 4/F1, this is good news as it means that it has stronger parents and a greater presence in the US and Asia.

Varity is primarily an automotive company, as is the Lucas Industries group, which is why Varity was interested.

However, Varity officials have assured Lucas Aerospace that they are behind them and industry experts see no reason for this not to be true.

 

Benefit

Lucas Aerospace is expected to benefit from the upturn in the market.

Initially it is thought that the new company will concentrate on the automotive areas where there is some overlapping of capabilities.

The official public announcement of the merger is due at the Motor Show in Birmingham, UK this October.

 

 

 

Source: Flight Daily News