French aerospace giant Safran and European missile manufacturer MBDA are reportedly in negotiations over the potential sale of Safran’s 50% stake in tactical propulsion systems business Roxel, according to a report by French weekly La Tribune. The discussions, which have been ongoing for over a year, could see MBDA acquiring Safran’s share of Roxel, leaving MBDA as the sole owner of the company.
Roxel, a company specializing in solid propulsion systems for rockets and missiles, was formed in 2003 from a merger between France’s Celerg and Britain’s Royal Ordnance Rocket Motors. The company employs approximately 800 people across France and Britain. Safran acquired its 50% stake in Roxel in 2011 when it purchased SNPE’s propulsion activities. Safran subsequently integrated Roxel into its Herakles unit, which focuses on solid propulsion.
The proposed sale would allow MBDA to boost its production capabilities and streamline development cycles. MBDA is a multinational joint venture comprised of France’s Airbus and Britain’s BAE Systems, each holding a 37.5% stake, alongside Italy’s Leonardo, which holds the remaining 25%.
Both Safran and MBDA have declined to comment on the report. Previous attempts to have Roxel repurchase Safran’s shares failed in 2013, highlighting the complexity of such transactions.
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