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Thread: France Pushing for 2 Mega Deals

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    Senior Member Steak-Sauce's Avatar
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    Default France Pushing for 2 Mega Deals

    [SIZE=4]Source: France Pushing for 2 Mega Deals[/SIZE]

    May. 11, 2013 - 01:18PM | By PIERRE TRAN


    PARIS — France is looking to sell naval company DCNS to electronics specialist Thales and broker a partnership between Nexter and Krauss-Maffei Wegmann in a bid to beat a budget crunch and slim down the land weapons sector, a source briefed on the subject said.

    If even one of the deals gets done, it would mark a big shake-up in the French arms industry, which has struggled in a hostile financial climate but has resisted reorganization moves.

    In other consolidation moves, Giat Holdings, the parent company of Nexter, is expected to announce as early as May 13 that it is in talks with the SNPE group to buy Eurenco, the maker of explosives and propellants, an industry executive said.
    Article continued @ Defense News

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    Senior Member Martel's Avatar
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    Thales already owns about 1/3rd of DCNS, it would be a good news.

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    Quote Originally Posted by Martel View Post
    Thales already owns about 1/3rd of DCNS, it would be a good news.
    non, ça va être la merde... it will give birth to a Giant that will be to big for France to handel, look at EADS, Enders want to transform it into an american based compagny so that he can prospect for the american military market and produce in dollar$...

    Thalès already is a huge compagny, but some smart people want to regroup Thales with Safran, Zodiac and DCNS... what the point in having a FADS went you dont have the money to keep it at bay ?

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    Quote Originally Posted by Corto_Maltese View Post
    [...] look at EADS, Enders want to transform it into an american based compagny so that he can prospect for the american military market and produce in dollar$...
    There was the proposal of a merger between EADS and BAE, which didn't materialize. EADS already has a North America branch (EADS NA) for both US markets (civilian and military). So what are you talking about?

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    Quote Originally Posted by Steak-Sauce View Post
    There was the proposal of a merger between EADS and BAE, which didn't materialize. EADS already has a North America branch (EADS NA) for both US markets (civilian and military). So what are you talking about?
    you cannot prospect for sensitivs US military markets (like Stealth, Nuclear, ballistic missils,etc...) if you are not a 100% US controlled compagny. Look at the problems BAE systems has now with his shares in the F-35 and others...

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    Quote Originally Posted by Corto_Maltese View Post
    you cannot prospect for sensitivs US military markets (like Stealth, Nuclear, ballistic missils,etc...) if you are not a 100% US controlled compagny. Look at the problems BAE systems has now with his shares in the F-35 and others...
    BAE has problems getting highly sensitive deals in the US?

    They supply electronic warfare systems to the F-35, B-2 and the F-22 (not 100% sure on the F-22 though) off the top of my head, doesn't seem like they're having too much of a "problem". BAE has a division in North America, BAE Systems Inc. They are a subsidiary of BAE Systems Plc and pretty much manage themselves.

    BAE Systems has done well in the US defence market, now the problem is it's done TOO well in the US because it's now highly tied to how the US defence budgets pan out.

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    Senior Member Steak-Sauce's Avatar
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    Since when is EADS interested in selling stealth, nuclear weapons, etc. to the Americans? EADS NA is there to deal with the American market, period. Their goal is to get a foothold into the American market. What's so hard to understand about this fact? Show me some prove that Enders is indeed interested in turning EADS - as a whole - into an American-based company. Which is quite ridiculous, to be frank. I don't care about BAE when your claim is based on EADS.

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    Quote Originally Posted by Steak-Sauce View Post
    Since when is EADS interested in selling stealth, nuclear weapons, etc. to the Americans? EADS NA is there to deal with the American market, period. Their goal is to get a foothold into the American market. What's so hard to understand about this fact? Show me some prove that Enders is indeed interested in turning EADS - as a whole - into an American-based company. Which is quite ridiculous, to be frank. I don't care about BAE when your claim is based on EADS.


    EADS whant the R&D money of the US military : US military budget ~700 billions... British+French+German+Italien+Spanish budgets = ~ 150 billions... Enders want MONEY he dont care about nationalities.

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    I want PROVE for your claims, because I don't care about what you think Enders is up to. "Prove" as in "solid researched facts" to support your thesis.

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    Quote Originally Posted by Corto_Maltese View Post
    non, ça va être la merde... it will give birth to a Giant that will be to big for France to handel, look at EADS, Enders want to transform it into an american based compagny so that he can prospect for the american military market and produce in dollar$...

    Thalès already is a huge compagny, but some smart people want to regroup Thales with Safran, Zodiac and DCNS... what the point in having a FADS went you dont have the money to keep it at bay ?
    Well, I don't know where to start ...

    First, it will be a big company, but not a giant. The companies already closely work together on the same products in different area (even if there will be some kind of synergy). It's not uncommon to see employees switching from one to the other.
    DCNS is about 1/4 the size of Thales, so it will not be a huge boost in size.

    And where did you see that Enders wanted to turn EADS in an American based company ?

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