France approves Safran takeover of SNPE Energy Materials
An agreement in principle has been reached for French aerospace and defence group Safran to buy SNPE Energy Materials (SME), an aide to Economy Minister Christine Lagarde told AFP on Monday.
"There is an agreement in principle concerning the offer for Safran to take over SNPE Energy Materials," with the support of state property agency APE, the aide said, requesting anonymity.
Safran is involved in rocket engine building and has been working for months to acquire SME, a subsidiary of the state-owned SNPE specialising in rocket and missile propellant.
The two groups are both working on propulsion systems for France's M51 strategic nuclear missile and the Ariane 5 space rocket.
Financial newspaper Les Echos reported that the deal's value would be based on a little over one year's revenue for SME, or 270 million euros (346 million dollars).
SME employs around 2,400 people, with a research centre and two factories in France.
© 2010 AFP