Defence companies bidding for Atlas Elektronik

The German press has been linking Thales with Germany’s OHB Technology AG in a bid to ?Germanize? its bid for Atlas Elektronik. The French defence company has not commented on this rumour but considers it to be the most flexible bidder and has stated that an alliance between it and Atlas would be a good fit. Thales has a long record of successful consortium alliances around the world, notably in countries like the Netherlands, the U.K. and Australia.

In another report, European Aeronautic Defence and Space Co. NV (EADS) said it is teaming up with Germany’s ThyssenKrupp AG to submit a bid for Atlas, a wholly owned unit of BAE Systems PLC of the UK. Based in Bremen, Germany. ThyssenKrupp will have a 60% interest in the joint venture that will submit the bid on behalf of the two companies.

Companies interested in bidding for Atlas have until the end of this week to submit their offers, after which a shortlist will be selected.

Some officials in the German defense ministry aren’t keen to allow Atlas to be taken over by Thales, arguing that because Thales is planning to link up with French naval shipyard DCN, much of Germany’s naval construction know-how would end up in French hands.

EADS is 30% owned by Germany’s DaimlerChrysler AG.

The Germans also are smarting over last week’s announcement that Armaris, a joint venture between Thales and DCN, has won a multi-billion-dollar contract in India for six Scorpene class submarines that can fire conventional or nuclear missiles, with an option for six more. India, which is replacing its fleet of 16 aging submarines, will build the vessels in Mumbai thanks to a technology transfer deal. German naval shipbuilder HDW, a unit of ThyssenKrupp, also submitted a bid for the Indian contract.