• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar
  • Excelitas Qioptiq banner

BATTLESPACE Updates

   +44 (0)77689 54766
   

  • Home
  • Features
  • News Updates
  • Defence Engage
  • Company Directory
  • About
  • Subscribe
  • Contact
  • Media Pack 2023

CORPORATE AMERICA RESPONDS

December 5, 2002 by

PART II – CORPORATE AMERICA RESPONDS
By Julian Nettlefold, Editor, BATTLESPACE

Running in parallel with the huge changes in procurement policy, a number of U.S. Corporations responded with major changes in strategy and acquisition policy.

Not wishing to be left out in the quest for rich pickings from the U.S., on July 11th, industry body AECMA announced that European arms firms want to work on an equal basis with U.S. peers on major contracts, a leading industry lobby said on Thursday, evidence of growing unease at the yawning gap in defence spending either side of
the Atlantic.

“We are ready to start, on a balanced basis, a new defence programme in partnership with U.S. companies,” said Jean-Paul Bechat, president of European industry body AECMA, at a news conference. The U.S. defence budget is already twice that of European countries combined, and President George Bush has proposed a 13 percent hike in the U.S. military budget to $394bn.

Mainland European arms firms are frustrated by 20 years of falling domestic budgets, and have met with little success in bidding for U.S. work. In an attempt to shock governments into action, the companies have long warned that persistent underfunding will undermine their technical capability, leaving nations with little choice but to buy U.S. weapons. That may have already begun. Lockheed Martin Corp’s (NYSE:LMT – News) F-35 combat jet, known in its project form as the Joint Strike Fighter, is years away from production but has already seized a chunk of European government funding that could have been spent on Eurofighter GmbH’s Typhoon.

Bechat, who is also chairman of French state-owned aero engine maker Snecma , said ventures in which U.S. and European firms have an equal stake and bid for transatlantic projects would be a better solution for the nations involved. “JSF, when it is joined by some European states, is becoming some kind of transatlantic programme, but it is nothing like European programmes such as the Eurofighter, which is made and designed within Europe,” Bechat said. “We would like transatlantic cooperation to be on the basis of a balanced partnership.”

The European pioneer in U.S. cooperation is Britain’s BAE Systems
which has made best use of close UK historical and political ties to America to win major U.S. contracts, including a key role and 14 percent share in the F-35 programme.

In January L-3 Communications announced a number of strategic acquisitions. On January 7th it acquired SY Technology, Inc. for approximately $48m in cash, plus additional considerations contingent on its financial performance for 2002 and 2003.

In addition on January 2nd, L-3 Communications announced that it has agreed to acquire the Detection Systems business of PerkinElmer for approximately $100m in cash.

The company had already announced on December 19th, that it has acquired the defense business of Bulova Technologies for approximately $44m in cash.

On January 14th that Raytheon Co. was selling its Aircraft Integration Systems division to L-3 Communications for $1.13bn to pay down debt and focus on its core defense business. This strategic acquisition by L-3 has propelled the company into a new tier of the supply chain, creating a major player in the aircraft integration business.

The audacious and subsequently successful bid on February 22nd by Northrop Grumman for TRW in February of this year was a sign of things to come. Northrop Grumman Corp. launched a $5.9bn unsolicited bid today to buy TRW Inc. (NYSE:TRW – news), aiming to boost its aerospace business only three months after it sealed a deal to buy Litton.

On July 1st the deal was agreed to buy TRW Inc. in a sweetened deal worth $7.8bn, ending a four-month stand-off between the companies. Under the terms of the deal, one of the largest in the defense field since the industry consolidated in the 1990s, Northrop is offering the equivalent of $60 for each TRW share. No

Primary Sidebar

Advertisers

  • qioptiq.com
  • Exensor
  • TCI
  • Visit the Oxley website
  • Visit the Viasat website
  • Blighter
  • SPECTRA
  • Britbots logo
  • Faun Trackway
  • Systematic
  • CISION logo
  • ProTEK logo
  • businesswire logo
  • ProTEK logo
  • ssafa logo
  • Atkins
  • IEE
  • EXFOR logo
  • KME logo
  • DSEi
  • sibylline logo
  • Team Thunder logo
  • Commando Spirit - Blended Scoth Whisy
  • Comtech logo
Hilux Military Raceday Novemeber 2023 Chepstow

Contact Us

BATTLESPACE Publications
Old Charlock
Abthorpe Road
Silverstone
Towcester NN12 8TW

+44 (0)77689 54766

BATTLESPACE Technologies

An international defence electronics news service providing our readers with up to date developments in the defence electronics industry.

Recent News

  • EXHIBITIONS AND CONFERENCES

    February 3, 2023
    Read more
  • VETERANS UPDATE

    February 3, 2023
    Read more
  • MANAGEMENT ON THE MOVE

    February 3, 2023
    Read more

Copyright BATTLESPACE Publications © 2002–2023.

This website uses cookies to improve your experience. If you continue to use the website, we'll assume you're ok with this.   Read More  Accept
Privacy & Cookies Policy

Privacy Overview

This website uses cookies to improve your experience while you navigate through the website. Out of these, the cookies that are categorized as necessary are stored on your browser as they are essential for the working of basic functionalities of the website. We also use third-party cookies that help us analyze and understand how you use this website. These cookies will be stored in your browser only with your consent. You also have the option to opt-out of these cookies. But opting out of some of these cookies may affect your browsing experience.
Necessary
Always Enabled
Necessary cookies are absolutely essential for the website to function properly. This category only includes cookies that ensures basic functionalities and security features of the website. These cookies do not store any personal information.
Non-necessary
Any cookies that may not be particularly necessary for the website to function and is used specifically to collect user personal data via analytics, ads, other embedded contents are termed as non-necessary cookies. It is mandatory to procure user consent prior to running these cookies on your website.
SAVE & ACCEPT