Brussels, 21/03/2007 (Agence Europe) - On Tuesday 20 March, the European Commission approved the planned acquisition of joint control by French defence equipment supplier and naval prime contractor Thales, and the French state, of the French military shipyard DCN.
Thales SA is a supplier of military and civil electronics and equipment, producing for example so-called “Combat Management Systems”, "Command and information systems (CIS)", sonars, torpedoes and other systems for naval, aeronautical and terrestrial applications. Thales is also active as a prime contractor for naval vessels. DCN is a military shipyard building, repairing, refitting and decommissioning naval vessels and submarines. As a result of the transaction, Thales would acquire joint control of DCN, which until now has been wholly owned by the French state. The deal only covers markets for military goods.
The Commission's market investigation concluded that the transaction would not significantly impede effective competition. In addition, a number of effective competitors would continue to operate in the naval equipment market.
In addition to the merger agreement, the parties signed an "Agreement on Industrial and Commercial Cooperation" shaping their future cooperation. The Commission's decision is without prejudice to an analysis of any aspect of this agreement, which would not be directly related and necessary to the operation, under EC Treaty anti-trust law (Articles 81 and 82). (cd)