BAE SYSTEMS PLC
22 March 2004
22 March 2004
'BAE Systems and Finmeccanica achieve an important milestone in the Eurosystems
transaction'
BAE Systems and Finmeccanica are pleased to announce that they have achieved an
important milestone in the Eurosystems transaction.
The Eurosystems partnership - initially announced with the signing of the
preliminary MoU on July 3, 2003 - represents the common will of Finmeccanica and
BAE Systems to reinforce their strategic co-operation, through an extension to
other business activities. To this aim, a Strategic Steering Council will be
established in order to oversee the co-ordination in all relevant areas of
common interest, identifying opportunities either within the existing joint
ventures or by the formation of new entities.
The companies have agreed in principle the businesses to be included in the
transaction and their respective valuations.
The companies will form two joint ventures each under the clear operational
control of one of the parents:
• A Systems Integration business, to be majority owned by BAE Systems, with
capabilities in information systems and sub-systems, combat management
systems, land and naval radar.
• An Avionics business, to be majority owned by Finmeccanica, with
capabilities in sensor systems, airborne radar, mission systems,
electro-optics and electronic warfare systems.
Recognising the relative sizes of the companies' communications businesses, it
has been agreed that Finmeccanica, through Marconi Selenia Communications, will
acquire the relevant BAE Systems communication activities in the UK. These
activities will considerably strengthen the capability of Marconi Selenia
Communications in the UK.
It has also been agreed in principle that Finmeccanica will acquire the Air
Traffic Management activities of Alenia Marconi Systems. The companies believe
that these activities will be more fully developed through closer alignment with
the related Finmeccanica activities in this area, such as those ones carried out
their in the Space field.
The overall turnover of the activities involved in the transaction is around €
3.7 bn.
Sir Richard Evans and Pier Francesco Guarguaglini, the Chairmen of the
respective parent companies, said in a joint statement today: 'Achieving this
milestone is further evidence of the developing strategic relationships between
our two groups. Thanks to Eurosystems, leading global players will be
established that can deliver advanced system and sensor solutions to their
customers. The agreement announced today represents the major decision point to
progress to complete this transaction by mid-year.'
The next step is for the companies to conduct due diligence and to prepare the
contractual documents.
Issued by
BAE Systems plc
London
This information is provided by RNS
The company news service from the London Stock Exchange
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