Atlas Elektronik for sale

BAE Systems has officially put up for sale Atlas Elektronik, its German naval systems business thereby ending months of speculation about its intentions for the naval command-and-control and torpedo business. The company is in discussion with the German government over how to go about it since Berlin is keen to keep Atlas in German hands.

Unsurprisingly, Hamburg-based ThyssenKrupp Marine Systems has stated it would be willing to buy itself into Atlas but only if another company is prepared to join as a partner. ThyssenKrupp owns German naval shipbuilder Howaldtswerke Deutsche Werft (HDW) in Kiel and others.

With shipbuilding consolidation now gathering pace in Germany, London-based BAE had taken the decision to sell the company so that it could become part of the consolidation since, otherwise, it could become isolated. BAE signed up Deutsche Bank to undertake an internal audit of the 350-million-euro ($423.9 million) business early this year. Industry sources say that the company has been holding informal discussions with interested parties for several months.

Besides ThyssenKrupp, European companies EADS, Thales and Finmeccanica also have expressed an interest, as have several US concerns, including L-3 and Lockheed Martin.

The sale of Atlas would add to the list of BAE sell-offs in Europe as it redirects its strategy to grow in the United States. The company has sold off space, defense electronics and avionics businesses in Europe in recent years and expects the Atlas sale would take between six and nine months to complete.