ADI could become wholly French-ownedFrench defence and electronics company Thales SA confirmed on the weekend it would seek to take over Australia's biggest defence contractor, ADI, by buying the remaining 50 per cent it does not already own from Australian construction group Transfield Holdings.
Financial terms were not released but the deal is likely to cost Thales
hundreds of millions of dollars.
In a statement posted on ADI's website, Thales said Transfield had agreed to sell its stake and would support an application to Australia's Foreign Investment Review Board (FIRB) that must approve the transaction before it can become effective.
Thales' ownership of ADI may be thwarted by the FIRB because it is
30 per cent owned by the French Government which has opposed recent U.S. military campaigns.
ADI handles sensitive military technology contracts and has U.S. defence customers.
ADI, previously known as Australian Defence Industries, was owned by the Federal Government until 1999 when Thales and Transfield bought it for $360 million.
ADI had sales of more than $688 million and
2700 staff around Australia in 2005.
Thales Australia head Paul McClintock said in a statement that the current managing director of ADI, Lucio Di Bartolomeo, planned to move to a non-executive role outside the company once the deal was completed.
Thales already has a major presence in Australia.
ADI is the prime contractor for several Australian defence programs and is involved in a U.S. Army deal to produce 40 high-mobility engineering vehicles in a partnership with Oshkosh Truck Corp.
source: The Advertiser6 Mars 2006
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