Brussels, 15/03/2005 (Agence Europe) - The European Commission has authorised both planks of the “Eurosystems” operation concluded in January 2005 between the British company BAE Systems (BAES) and the Italian Finmeccanica. This operation related to the acquisition of the “avionics and communications” activities of BAE Systems by Finmeccanica and the splitting up of their joint company AMS. Both companies, which operate on a global scale, make avionic and electronic systems and armament and communication system for the defence and aeronautics sectors. AMS is active in the sector of command and control systems, radars and simulations systems for the army and navy military markets. Once the joint company is dissolved, both parent companies will take on AMS's activities in their respective geographical areas of Italy and the United Kingdom. According to the European Commission, this division of AMS's activities will not lead to horizontal overlaps of activity, any more than the transfer to Finmeccanica of the “avionics and military communications” pole of BAES in the United Kingdom. The Commission takes the view that both groups will always have plenty of American and European competitors specialising in the field of defence and that the strong negotiating powers of their clients (defence ministers) will prevent any anti-competitive impact.
The European Commission's competition services looked particularly closely at the British helicopter and surface vessel market. Upon inquiry, they felt that the Italian company stepping up its activities in the avionics sector and the acquisition of the British AMS activities by BAES would have no damaging effects on competition. The Ministry of Defence (MoD), the main buyer, practises open competition between suppliers for its helicopter and vessel procurement and this situation will remain unchanged.