French, Italian firms team up in underwater defence projects

0 Comments | AFP, November, 2007

NICE, France (AFP) — French electronics firm Thales, the French naval defence group DCNS and Finmeccanica of Italy said Friday they had signed a preliminary agreement to create joint underwater defence companies.

The accord, reached at France-Italy summit here, "will strengthen the European defence industry, creating a leading player in this domain," a joint statement said.

A first company to be created from the arrangement will be responsible for torpedo system engineering and will be 51 percent owned by Finmeccanica and 49 percent by DCNS.

A second company will manufacture torpedoes and will be 51 percent controlled by DCNS and 49 percent by Finmeccanica.

A third joint venture, 51 percent controlled by Thales and 49 percent by Finmeccanica, will...