French government eyes Nexter tie-up with BAE Systems
The French government would look favourably on the sale to BAE Systems of a majority share in land systems specialist Nexter Group, sources close to...
09-May-2008
Not sure. It would be good for them to gain complete control over CTA International as well as the munitions business. Though BAE Systems has been investing large sums in its UK munitions business, apparently they are now churning out 1 million munitions a day.
As for product duplications, they have three options imo:
1. Continue as is and accept duplication (a bit like US - UK land systems at the moment)
2. Phase out the worse product and just sell one, depending on quality
3. Phase out most of Nexters products and use it as a shop window in France
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Yes, but Nexter don't represent a lot of workers and we would be free to buy for billions elsewhere.
Like BAE loves money it's not an option.
Why isn't it an option? What BAE cares about is profit, not turnover. Nexter doesn't make a lot of profit. I could imagine the guys in Farnborough would use their red pencil at Nexter in some areas of extreme duplication. But we'll see if this happens so or so.
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Can you really see BAE having much control over Nexter if this did go ahead? Personally I can't imagine the French government giving up control without having some pretty major safeguards severely limiting what BAE can do with France's only major land systems prime. That's why I don't think BAE would be too interested.
Quote:Can you really see BAE having much control over Nexter if this did go ahead? Personally I can't imagine the French government giving up control without having some pretty major safeguards severely limiting what BAE can do with France's only major land systems prime. That's why I don't think BAE would be too interested.
The same we accept to purchase racal with British saveguards..
This message has been edited by gomica on May 13, 2008 8:21 PM This message has been edited by gomica on May 13, 2008 7:40 PM
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