Beyond Armaris: Thales “Buys” Minority Stake in DCN

In December 2005, the French state and Thales issued a joint declaration of intent that Thales and DCN would tighten their ties via Thales’ purchase of a 25% interest in DCN. The two companies have previously formed Armaris in 2002 to work on joint projects like the Horizon Class air defense frigates and FREMM multi-role frigates for the French and Italian navies, and are also joint participants in the MOPA2 joint company set up to build France’s second aircraft carrier. The deal was expected to be finalized by the summer of 2006, but was not completed until late March 2007. Early reports said Thales would transfer the non-equipment businesses of Thales Naval France (excluding radars), the activities of the partners’ 50/50 joint venture Armaris and its subsidiaries, and Thales 35% interest in the joint MOPA2 firm created to build France’s second aircraft carrier, to DCN. The scope of the agreement will also throw in Thales’ 24% share in Eurotorp, the European lightweight torpedo consortium. An additional, undisclosed cash contribution is also involved. At the conclusion of this deal Thales will become DCN’s “industry shareholder” with a 25% minority stake and some Board of Directors representation, while the French State will […]