spacetoday.net: Alcatel, Finmeccanica to merge space operations

Posted: Fri, Jun 18, 2004, 4:32 PM ET (2032 GMT)
European companies Alcatel and Finmeccanica have agreed to merge their satellite manufacturing and services units, the first sign of a long-awaited consolidation in the market, the two companies announced Friday. Under the agreement the two companies will merge their space operations and create two separate ventures. One, called Alcatel Alenia Space, will consist of the satellite manufacturing units of Alcatel Space and Alenia Spazio, which is owned by Finmeccanica. The other, not named in the press release announcing the merger, will combine the satellite operator Telespazio with the operations and services activities of Alcatel Space. Alcatel Alenia Space will be two-thirds owned by Alcatel with the remaining third owned by Finmeccanica; the reverse will be true for the other venture. The merger, first reported in Monday's print edition of Space News but not formally announced until Friday, comes after years of expectations of a merger of some or all of the major European satellite manufacturers. Alcatel and Astrium has reportedly been subject to merger discussions in the recent past, while Astrium and Finmeccanica had worked on a merger agreement but could not reach a final agreement.