29 Jun 14. Saab acquires ThyssenKrupp Marine Systems AB. Defence and security company Saab has entered into an agreement with ThyssenKrupp Industrial Solutions AG regarding the acquisition of ThyssenKrupp Marine Systems AB (TKMS AB, formerly Kockums). The purchase price is MSEK 340. This acquisition is in line with Saab’s ambition to increase its capabilities in the naval domain. This move further strengthens Saab’s status as a comprehensive supplier of military systems. In April 2014, Saab and ThyssenKrupp Industrial Solutions AG signed a non-binding Memorandum of Understanding regarding the acquisition of the Swedish shipyard TKMS AB with operations based in Karlskrona, Malmö and Muskö, Sweden. The parties have now agreed that Saab will acquire TKMS AB. The purchase price is MSEK 340. Existing funds will be used to finance the acquisition. The transaction’s effect on Saab’s result for 2014 is estimated to be non-material. TKMS AB will be integrated into Saab’s business area Security and Defence Solutions.
“We are looking forward to welcoming Kockums and its personnel to Saab. This acquisition marks the start of a new era in Kockum’s notable history. The knowledge that the employees possess for developing and producing submarines is unique and strengthens all of Saab”, says Saab’s President and CEO Håkan Buskhe.
“Integration and development efforts will now begin to ensure that operations reach their full capacity. It is important to achieve synergies with Saab’s current naval business. This process must be allowed to take its course, but at the same time we begin deliveries of development, maintenance and production work to the Swedish market,” says Gunilla Fransson, Head of Business Area Security and Defence Solutions. TKMS AB designs, builds and maintains naval systems such as submarines and surface vessels. Other successful products include air independent propulsion (AIP) systems based on Stirling technology, submarine rescue vehicles and mine counter measures systems. The company has approximately 900 employees and supplies systems and products to the navies of Sweden, Australia and Singapore. During the financial year 2012/2013, TKMS AB reported sales of approximately SEK 1.7bin (2011/2012: SEK 1.9bn) and income from operations of approximately MSEK 34 (2011/2012: MSEK 13). The transaction is subject to approval by the board and the supervisory bodies of ThyssenKrupp Group and the Swedish Competition Authority. These approvals are expected during July 2014. Thereafter the takeover of TKMS AB will be completed.
03 Jul 14. France ready to sell corporate stakes to pay down debt. France has signalled it is ready to sell some of the state’s €100bn corporate shareholdings in companies to help pay down debt and invest in areas such as energy and housing. It also pledged to stick to its budget deficit target for next year despite joining calls for greater flexibility in EU fiscal rules as it struggles to boost growth and cut unemployment. Concerns about the economy were underscored on Thursday when the International Monetary Fund cut its growth forecast for France for this year to 0.7 per cent, below its previous estimate and that of the government of 1 per cent. With growth subdued and spending tightly constrained, Michel Sapin, finance minister, told journalists the government intended an “active management” of its corporate stakes, including “in part” to cut state debt – currently standing close to €2tn, or more than 90 per cent of gross domestic product. This would “contribute to the diminution” of the budget deficit, Mr Sapin said, without giving details. He stressed that the sales would not include ending the state’s decisive role in strategic companies. The state has majority or large shareholdings in companies including EDF, the utility, Areva, the nuclear group, Renault, the carmaker, Airbus, and Orange, the telecom group. Last month, it took a 20 per cent stake in Alstom as part of the engineering group’s dea