EADS and BAE Systems are already working together for years in the Eurofighter consortium, which produces, in association with the Italian Alenia Aeronautica, the Typhoon fighter.
DECRYPTION giant European aerospace and defense and its British rival announced Wednesday their intention to merge.
This is not an ad, this is a big bang. Confirmation by EADS and BAE Systems discussions on a merger of the two groups, after a leak in a hurry Bloomberg, looks good in a tsunami engulfing the small world of aerospace and defense.
The merger would create a giant behemoth $ 94 billion in sales away from $ 68.7 billion in sales in 2011, Boeing and Lockheed Martin 46.5 billion. In short, a world leader present in both the civilian and military activities, leading player in the United States, the Achilles heel of historical EADS.
Why marriage is conditional
Should not be mistaken: if the two groups warn that there is no guarantee of successful operation, the discussions are sufficiently advanced to very specific details were mentioned: the new set to be held 60% by EADS shareholders and 40% by BAE those. Of "golden shares" in the new group would be allocated to the French, German and British to "replace action [preferably] existing in favor of the British Government and BAE shareholders in EADS." We know the same special dividend to its shareholders EADS pay for success of the operation: 200 million pounds (about 252 million) ...
Why such a marriage? EADS, in its strategic plan called "Vision 2020," long hoped to develop in the defense, to compensate for the weight of Airbus in the group, and the U.S. military market, which represents 41% of the global market. BAE Systems, of British origin, but very established in the United States, is the perfect target: World number three defense behind Lockheed Martin and Boeing, the Pentagon and partner (program F-35 fighter ...), it is also very present in cybersecurity, one of the strategic EADS and services, one of the areas covered by the Vision 2020 of the European group.
Two groups have learned to work together
EADS and BAE are also far from discovering: they have long been co-pilot of Airbus, EADS will not redeem before 20% of BAE in 2006. They are also co-shareholders, with Italy's Finmeccanica, the Eurofighter consortium, develops the Typhoon fighter, and world number two missiles MBDA, again with Finmeccanica. EADS-BAE merger bousculerait capitalistic balances within these groups, with Finmeccanica well alone with the giant paneuroépen, especially as the Italian group, weakened by corruption and deeply in debt, is far from a health post remarkable.
EADS why did not he run before? Discussions, a source close to the group, reportedly began several months ago, probably before the departure of Louis Gallois. Asked by Challenges on whether a redemption of BAE on 31 May, on the eve of his departure from EADS, the former Executive Chairman of the European group had also not denied some interest, but had issued two big downsides: "It would be very expensive, and before buying something it must be for sale! There is a golden share in BAE and I do not see the British government to separate one of the jewels of the Crown. "
London now seems willing to leave BAE merge, perhaps to strengthen the group's backing of a giant present only beyond advocacy. Shareholders of EADS, Daimler and Lagardère head could also see in operation the opportunity to finally relieve participation they do not want a long time. Daimler has confirmed on Wednesday that it plans to reduce its share still in the aeronautics giant in 2012. As the United German and French, they could access Tom Enders repeated requests to leave the capital of EADS, leaving only the golden shares to protect their strategic interests, such as ballistic missile nuclear M-51, developed by Astrium ( EADS).