Fincantieri Open to Collaboration with Thyssenkrupp Marine Arm
Fincantieri is open to all types of collaboration with the warship division of conglomerate Thyssenkrupp, but it is up to Germany to decide on a strategy for the unit, the CEO of the Italian shipbuilder said this week.
"Now is time for German institutions to understand what the best strategy is to give more value and strengthen (Thyssenkrupp Marine Systems). We are at their disposal for any possible forms of collaboration," Fincantieri Chief Executive Pierroberto Folgiero told Bloomberg television.
Last week private equity firm Carlyle dropped out of a bidding process for Thyssenkrupp Marine Systems (TKMS), in a major blow to the German group's restructuring.
The company did not say why Carlyle pulled out, but said it would now focus on a spin-off of the division, which builds submarines and frigates, and that it remained open to industrial partnerships.
Folgiero said the group would be interested in widening the existing commercial collaboration with TKMS or "creating new ones to be instrumental to their strategies".
Fincantieri has never made a secret of its interest in TKMS, particularly given its drive to grow in the defence business, at a time when spending by governments is increasing due to greater political instability, and defence groups are pushing for wider European alliances.
"De-fragmentation (of the defence industry) is the way forward, to spend better before spending more," Folgiero said, adding that consolidation would also lead to greater sharing of manufacturing platforms.
Fincantieri bought Leonardo's UAS in May in a deal giving the submarine business an enterprise value of 415 million euros ($450 million) and it launched a capital hike of up to 500 million euros in two parts to finance the operation.
That process probably means another acquisition is not on the cards for the time being.
"With an M&A deal that has just been completed it is probably a bit premature to think of another one now," a source told Reuters.
(Reuters)
