European multi-national missile house MBDA is likely to take over German competitor LFK by the middle of next year, says MBDA chief executive Marwan Lahoud.
MBDA, which already owns 20% of the German company, "has never been so close" to integrating LFK, Lahoud told journalists at the show.
European Aeronautic Defense and Space (EADS) holds stakes in both organisations and "strategically, everyone agrees that it doesn't make sense to have EADS holding shares in two different missile interests", says Lahoud. EADS would sell MBDA its shares.
An enlarged EADS might then be in such a strong position that it would swallow up the other German missile manufacturer, BGT. BGT partners MBDA on some sectors and competes with it in others.
"The question is how do we combine, what's the sequence," says Lahoud.
Asked what would trigger that sequence, he adds that work is already ongoing with MBDA on integrating LFK and developing strategic agreements with BGT.
Source: Flight Daily News