EU Clears Thales, DCN Shipbuilding Combo
France's two main warship makers, DCN and Thales SA, won EU approval to combine their shipbuilding businesses, boosting the prospect of wider consolidation in Europe's fragmented naval sector. The French government has backed the deal, in which state-owned naval shipyard DCN is buying Thales' shipbuilding activities in France _ excluding its parts-making business. Thales has taken a 25 percent stake in DCN, with the option of raising the stake to 35 percent over the next two years. The European Commission said its investigation showed the deal would not cause antitrust problems because the two already cooperate closely and a number of effective rivals would remain standing.
EU Clears Thales, DCN Shipbuilding Combo
France's two main warship makers, DCN and Thales SA, won EU approval Tuesday to combine their shipbuilding businesses, boosting the prospect of wider consolidation in Europe's fragmented naval sector. The European Commission said its investigation showed the deal would not cause antitrust problems because the two already cooperate closely and a number of effective rivals would remain standing. Thales had already sold most of its naval equipment business to DCN before the deal, it said, meaning that any new changes would be limited and there was little chance of the combined company choking supply to rivals. DCN will acquire Thales' naval assetsā¦
Coast Guard May End Lockheed-Northrop Contract, Commandant Says
According to reports, the U.S. Coast Guard may not renew its $24 b contract with Lockheed Martin Corp. and Northrop Grumman Corp. to modernize the service's aging ships, the Coast Guard's top eofficial said. The service is considering a number of options as it negotiates with the two companies about renewing their contract to continue the Deepwater modernization program, Coast Guard Commandant Thad Allen told reporters after a Senate subcommittee hearing. The $3bcontract extension would start in June and continue for 43 months. Senators from both parties said the Coast Guard has done a poor job of managing a program which, since its 2002 inception, has experienced delays, cost overruns and design flaws.
