Alcatel and Finmeccanica merge space operations

18th June 2004, Comments 0 comments

PARIS, June 18 (AFP) - The French telecommunications equipment group Alcatel and Finmeccanica of Italy said Friday they have agreed to to merge their space operations by creating two jointly owned companies, one focused on satellite manufacturing and one on services.

PARIS, June 18 (AFP) - The French telecommunications equipment group Alcatel and Finmeccanica of Italy said Friday they have agreed to to merge their space operations by creating two jointly owned companies, one focused on satellite manufacturing and one on services.  

Synergies seen from the alliance "will improve operating profitability by several points," the companies said in a joint statement.  

Alcatel will hold a 67 percent stake in the manufacturing company Alcatel Alenia Space and Finmeccanica will own the remaining 33 percent. Alcatel Alenia Space will combine Alcatel Space and Alenia Spazio's industrial activities, and is expected to post sales of 1.8 billion euros (2.2 billion dollars) in 2004.  

Finmeccanica will hold a 67 percent stake in the services company, which will group Finmeccanica's Telespazio with Alcatel Space's operations and services activities, and is expected to post in 2004 sales of 350 million euros. The new company's name has not been announced.  

The creation of the new companies, which is subject to shareholders' and regulatory approvals, should be completed by end-2004, the companies said.

© AFP


Subject: French news

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