24 Feb 15. GKN looks to car market for growth. GKN on Tuesday predicted strong demand for car parts will underpin growth in group revenue this year, but the British engineering group warned that its other core markets will be more challenging. The FTSE 100 company, which makes vehicle and aircraft components, reported underlying pre-tax profit of £601m for 2014, up 4 per cent compared to 2013. “We’re expecting a year of further growth but perhaps more modest than we’ve seen in recent years,” said Nigel Stein, chief executive of GKN. Shares in GKN were down 2.85 per cent in early afternoon trading in London at
374.7p. The Redditch-based company predicted revenue growth at its Driveline division, which makes car components, would exceed 2 per cent this year. But aerospace sales are expected to be flat, as weaker military spending offsets the stronger market for civilian passenger jets. GKN said sales at its Land Systems division, which counts on farm equipment for almost half of its turnover, would be lower this year as it is impacted by reduced agricultural demand due to a downturn in commodity prices. (Source: FT.com)
26 Feb 15. As part of its push into the defence sector, the $17bn SUV-to-software conglomerate Mahindra & Mahindra is in talks with BAE Systems for an alliance. Although the talks are on, “nothing has been concluded” yet, said two people with direct knowledge of the matter. M&M earlier had an alliance with BAE Systems but bought out its partner’s 26% stake in their joint venture Defence Land Systems India (DLSI) in 2013. Sources also say Mahindra is “not bidding” for a stake in Pipavav Defence & Offshore Engineering Co Ltd. There has been a buzz about Mahindra being one of the three entities interested in a stake in the company alongside the Hero Group, as well as French shipbuilder DCNS. When contacted, a Mahindra spokesperson said, “All of this is speculation and we will not comment on it.” Sources say defence is now among the top priority sectors for Group Mahindra with alliance/acquisition energy focused on it. Mahindra’s last major acquisition was when it bought out 51% stake in Peugeot Motorcycles for €28m. Its other European acquisition – Swedish auto major Saab – is stuck in first gear. “The group is still waiting for the other side to revert on Saab and so for now it’s not on the front-burner,” said a source. Mahindra’s first alliance with BAE was announced in 2010 with the Indian company holding 74% stake and BAE the rest in the JV DLSI. DLSI had plans to produce anti-mine vehicles for the Indian armed forces and supplying artillery howitzers in the future. However, three years later, the two partners parted ways with Mahindra’s 100% subsidiary Mahindra Defence Systems acquiring BAE Systems’26% shareholding in DLSI. Mahindra officials said at that time that the decision was a strategic one to enable both companies approach opportunities individually. However, even then, BAE had said in a statement that “building domestic capabilities in partnership with Indian companies will remain a cornerstone of our strategy in India. We look forward to opportunities to collaborate with Mahindra and others to enhance the role of the private sector in the defence industry.” (Source: Google/The Times of India)
21 Feb 15. EDIC Acquires 5 More Companies. The United Arab Emirates’ newly formed national defense company, Emirates Defence Industries Co. (EDIC), has acquired five major UAE defense firms under its umbrella, its chairman told Defense News. The merger — the first of its kind in the Arabian Gulf and looks to combine the UAE’s defense industries into a single entity — launched on Dec. 2. Now it has acquired Tawazun-owned pistol and rifle maker Caracal, light munitions maker Caracal Light Ammunition, and munition systems company Burkan. The company also integrated Mubadala’s unmanned systems developer Abu Dhabi Autonomous Systems Investment (ADASI) and AMMROC, the advanced military maintenance, repair