GIAT, SNPE talk merger

May 14, 2013 at 10:29 AM

ROANNE, France, May 14 (UPI) -- Two government-owned defense industry companies in France have agreed to enter merger discussions.

The entities are GIAT Industries, part of the Nexter Group, which manufactures munitions and armaments for the French military, and SNPE, which manufactures powders and explosives for military and civilian use.

"This operation should make it possible to bring together, within a same entity and while respecting their respective strategies, customers and markets, the complementary activities of the two groups in the munitions field ...," Nexter said in an announcement of the possible merger.

"It (the merger) should take place in 2013 in the form of a bringing together of the two groups around GIAT Industries."

Nexter said the talks on merger have the support of the French government but offered no details.

GIAT Industries generated revenues of nearly $488 million in 2012. SNPE, through its subsidiary Eurenco, not only produces powders and explosives but also nitrate ethylhexyl, a performance-enhancing additive to diesel fuel.

Like Us on Facebook for more stories from UPI.com  
Related UPI Stories
Latest Headlines
Top Stories
Shoot-from-the-hip, around corner sighting capability unveiled
Bleak outlook for oil has Russian investors pulling back
Airbus Helicopters announces factory acceptance of training aircraft
Oil prices off slightly after China stock market decline
Rhode Island to get offshore wind farm