On Monday 2 June, the European Commission approved the proposed creation of a defence joint venture (JV) between BAE Systems (Holdings) Limited, Japan Aircraft Industrial Enhancement Co. Ltd. and Leonardo S.p.A. (‘Leonardo’), which will be the prime contractor and lead systems integrator for the Global Combat Air Programme, or future combat aircraft.
The transaction relates primarily to multi-role combat aircraft. According to the parties, the strategic and economic rationale for the transaction is to develop a sixth-generation combat aircraft. The JV will act as prime contractor and lead systems integrator for the aircraft. The aircraft is intended for use by the governments of Italy, the UK and Japan, with the potential for sales to other jurisdictions or government buyers in the future.
The Commission investigated the impact of the transaction primarily on the Italian and international export markets for multi-role combat aircraft.
The Commission found that the notified transaction would not raise competition concerns given the absence of new horizontal overlaps between the companies’ activities in the relevant market, i.e. the Italian national market for multi-role combat aircraft.
For further details: https://aeur.eu/f/h4u (Original version in French by Lionel Changeur)