Thomson-CSF, Dassault Aviation, Aérospatiale-Matra and Snecma today announced their joint participation in 20% of Embraer's stock. Thomson-CSF will acquire an almost 5.7% interest in the Brazilian aircraft manufacturer.
This is an important operation for Thomson-CSF, for three reasons:
* It strengths our partnership with Embraer - a major player in the civil and military aeronautics market. Embraer is also a systems integrator, a leading partner for numerous defence systems contracts, in Brazil as well as elsewhere in South America. Thomson-CSF and Embraer already know each other well. Alongside Ericsson, Embraer and Thomson-CSF were chosen by Greece at the end of 1998 for its AEW&C (Airborne Early warning & Control) airborne surveillance programme for several NATO systems, which will be integrated into Embraer's EMB 145 commercial jet.
* It presents us with new civil opportunities, particularly in the area of avionics, by associating ourselves more closely with an attractive partner which has proved itself on the export market and which has held a strong competitive position on the market of regional transport aircraft.
* It confirms Thomson-CSF's multidomestic strategy.
Following recent successes in Australia with ADI, the United Kingdom and Singapore with Avimo, Canada and South Africa, this partnership with Embraer enables Thomson-CSF to reinforce notably its presence in Brazil and South America.
This operation is a further illustration of the Group's strategy of developing partnerships with the major local players in key markets, in the field of professional electronics.
