MBDA will integrate EADS' LFK missile unit this year, dropping plans to merge Germany's two missile companies into a single business until after the initial process is completed.

Long-running plans to combine Germany's two missile houses, BGT and LFK, stalled last year. MBDA - formed last December from the merger of Aerospatiale Missiles, Alenia Marconi Systems Dynamics and Matra BAe Dynamics - owns 20% of BGT (which is majority owned by Diehl group) and all of LFK via EADS' 70% stake and MBDA's 30% holding.

MBDA chief executive Fabrice Bregier says the integration will be completed by year-end, with LFK forming a German operating company, joining similar units in France, Italy and the UK.

Bregier says MBDA has not given up on merging with BGT. "We've had talks and were close to agreement." He adds: "We will integrate LFK fully and resume talks later, we still believe it makes sense to consolidate." Negotiations are unlikely, however, before next year.

Source: Flight International