British Aerospace/Finmeccanica/Aerospatiale Matra -- Statement By Geoff Hoon
Following the announcement by British Aerospace, Finmeccanica and Aerospatiale Matra that they have signed a Heads of Agreement to develop their partnerships around Alenia Marconi Systems (AMS) and Matra BAe Dynamics (MBD), Defence Secretary Geoffrey Hoon said:
"This is an important step forward in the process of restructuring in Europe's aerospace and defence industry, following on from last week's announcement by Aerospatiale Matra and DASA.
"The agreement on AMS is the second major announcement between British and Italian companies in this sector this year, following the agreement between GKN Westland and Agusta in March. The intention to integrate the missile capacity of AMS with MBD also represents an important development in co-operation.
"It is for industry to develop its own new framework, and Europe's defence industry needs to rise to the challenge of the global market-restructuring is not a luxury but an absolute necessity if companies are to survive.
"The co-operation between British Aerospace, Finmeccanica and Aerospatiale Matra also underlines the close links between European countries across the wider defence spectrum, linkages that we are determined to strengthen.
"Maintaining a strong and competitive European defence industry goes hand in hand with developing the robust European defence capability which the Kosovo experience has shown we are still some way from achieving. Governments across Europe must show the political will to build that capability - and European companies must show the same will to build the industrial structure to support it.
" As with any other merger proposal this announcement from BAe, Finmeccanica and Aerospatiale Matra will, of course, be subject to consideration by the regulatory authorities in due course and in the usual way. I cannot prejudge any findings they might make."
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British Aerospace/Finmeccanica/Aerospatiale Matra -- Statement By Geoff Hoon
