Thales-DCN merger goes ahead

The French government has announced a tie-up between defence company Thales SA and state-owned warship builder DCN, a long-anticipated deal seen as a step toward wider consolidation in European shipbuilding.

The government will retain 75% of DCN after the deal with Thales in which the state also has a 31% stake. A Thales-DCN merger is seen as a first step toward much-needed consolidation in European military shipbuilding. In exchange for the 25% stake in DCN, Thales will reportedly pay the government euro500 million ($596 million) in several installments and transfer assets worth euro 400 million ($477 million) to DCN, in a deal valuing the warship maker at up to euro 4 billion ($4.8 billion).