• Military Menu                       

• Introduction
• Systems
• Facilities
• Agencies
• Industry
• Operations
• Countries
• Hot Documents
• News
• Reports
• Policy
• Budget
• Congress
• Links

• WMD
• Intelligence
• Homeland Security
• Space

The consolidation of naval activities in France between Thales and DCN is operational

29 Mar 2007

DCN and Thales have finalised with the French government the agreement concerning the consolidation of their activities within the French naval defence sector. This major step is aimed at the constitution of a consolidated European naval defence industry in which DCN and Thales will have a major role to play. The agreement also approves the acquisition by Thales of a 25% stake in DCN.

The operation follows the joint declaration of intent, which both groups signed on the 15th December 2005 with Michèle Alliot-Marie, Minister of Defence and Thierry Breton, Minister for Economy, Finance and Industry.

Upon signature of the agreement, DCN will acquire the totality of Thales’s naval activities in France (excluding its equipment activities) and will become the sole shareholder of Armaris and MOPA2, the prime contractor for France’s PA2 aircraft carrier programme.

Simultaneously, Thales will acquire a 25% stake in DCN alongside the French government, which will retain a 75 % stake. Thales becomes "the industrial shareholding partner" of DCN and the terms of governance will allow Thales to play an active role on the Board of Directors to support the development of DCN. There will also be the possibility for Thales to increase its stake in DCN to 35% over the next two years.

This collaboration brings about synergies, in particular in the industrial and commercial fields as well as in upstream R&D sectors. It will strengthen the competitiveness of DCN’s offer to its customers, including its development on the international market. This phase is now operational. A new organization is being implemented by DCN, ensuring the optimal integration of the teams which will join the group.

The approximate pro forma turnover for 2006 of DCN in its new perimeter is close to 3 billion euros with an order book superior to 10 billion euros and a workforce of 13 300 persons.

Jean-Marie Poimbœuf and Denis Ranque highlight that this operation will bring about industrial and financial synergies "By consolidating our French naval activities, we aim to implement a European strategy which favours the emergence of a world leader in naval systems, combining the capacities of DCN and THALES with those of other European partners in the domain".