The European Commission has cleared the proposed take-over of EADS Deutschland’s guided weapons activities by the EADS/BAE Systems/Finmeccanica missiles joint venture MBDA.
The European anti-trust authority says that as "overlaps are limited and other large and capable players compete to supply military equipment,” the merger will not impede competition in Europe.
The transaction consists of the acquisition of joint control by EADS, BAE Systems and Finmeccanica, through the joint venture MBDA and its subsidiary LFK, over some businesses currently solely controlled by EADS through its subsidiary EADS Deutschland. EADS Deutschland is transferring its German guided weapons systems to MBDA.
Whilst MBDA is a leading missile producer, the EC's market investigation confirmed that a sufficient number of viable competitors will continue to operate after the acquisition, both in the German market and worldwide.
Defence ministries are considered sufficiently powerful to counterbalance any attempted anti-competitive behaviour by the new entity and to maintain a procurement policy based on open competition between suppliers, the EC says.
Source: Flight International