Askume, Sept 9 – French jet engine maker Safran (SAF.PA) and European missile maker MBDA are in talks about a possible sale of strategic propulsion systems business Roxel, the French “Tribune” reported on Monday.
The two companies own a 50% stake in Roxel and under the proposed deal MBDA would buy the remaining stake in Safran, the paper said, noting that talks have been going on for more than a year.
Roxel’s previous negotiations to buy back Safran’s shares failed in 2013, the company said.
Roxel was founded in 2003 by the merger of the French company Celergy and the British Royal Ordnance Rocket Motors. It designs, develops, manufactures and sells solid propulsion systems for all types of rockets and tactical and cruise missiles. The company currently employs around 800 people in France and the UK.
In 2011, Safran acquired a 50% stake in Roxel after it acquired SNPE’s propulsion business. A year later, Safran established the Heracles division, which he currently oversees, at Roxel, specialising in solid propulsion, following the merger of SME and SPS.
La Tribune said the acquisition of Roxel would help MBDA increase production and shorten the development cycle.
MBDA is a multinational joint venture made up of French Airbus (AIR.PA) , British BAE Systems (BAES.L) (each holding 37.5% of shares) and Italian Leonardo (LDOF.MI) (holding the remaining 25%) .
An MBDA spokesman declined to comment when asked about the Askume report, while Safran said it did not comment on market speculation.
