BAE Systems and Finmeccanica have signed a Memorandum of Understanding to establish Eurosystems, a partnership that brings together their European defence electronic systems activities.
The partnership establishes a Strategic Co-ordination Committee (SCC) and three majority controlled joint ventures, each with clear operational control of its business.
The SCC, formed by senior managers of the shareholders, will facilitate the co-operation and interaction of the joint ventures. The SCC will also ensure that the JV strategies support the multi-domain nature of future defence requirements and respond to the demand for highly integrated systems.
The three JVs will see the creation of a systems integration and C4ISR business, a communications systems business and an avionics business.
The formation of the three joint ventures is subject to the parties executing definitive agreements and obtaining all necessary regulatory clearances.
Richard Evans and Pierfrancesco Guarguaglini, the Chairmen of the respective parent companies, said in a joint statement: ‘Our companies have shared objectives in a desire to improve their performance in the market, establish businesses that address the trend towards integrated systems and enhance their operational effectiveness.
‘The MOU we have signed today provides the framework to achieve these objectives. Much detailed work remains to be done before the new companies are operational but we are confident that we will create companies that will meet our customers’ requirements and provide opportunities for profitable growth.’