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EADS completes full acquisition of EADS Astrium and Paradigm EADS completes full acquisition of EADS Astrium
Amsterdam, 26 May 2003 – On Monday, the European Commission formally approved the acquisition by EADS (stock exchange symbol EAD) of the 25 percent stake (27.5 percent economic share) in EADS Astrium, Europe’s leading space company, formerly held by BAE SYSTEMS plc. With the permission of the European Commission, the transaction was implemented on 7 May. EADS now wholly owns its Space activities, meaning it can integrate and restructure the Space business worldwide to enhance competitiveness in current market conditions. EADS is now starting to implement its comprehensive restructuring programme, including site reallocation according to a centre-of-competence approach and sourcing reorganisation. The EADS Space management plans to save a total of € 500 million in recurring costs by the year 2005 and to reach EBIT breakeven by 2004 for the Space Division. According to the two companies’ agreement which was announced at the end of January 2003, BAE SYSTEMS and EADS have each injected € 84 million equity into EADS Astrium Limited. EADS has also made a further € 99 million capital increase at EADS Astrium Limited. As the purchase price for BAE SYSTEMS' stake was also € 84 million, the transfer was effectively implemented for zero cash consideration. Full control of Paradigm Secure Communications Ltd., selected for the Skynet 5 military communications satellite programme formerly held jointly by BAE SYSTEMS and EADS, has already been transferred to EADS. Full ownership of Paradigm will allow EADS to expand in military telecommunications satellites services, which is a major area of future growth. About EADS: EADS is a global aerospace and defence company and is the world’s second largest in terms of revenues with € 29.9 billion in 2002. EADS has a workforce of more than 100,000 and is a market leader in defence technology, commercial aircraft, helicopters, space, military transport and combat aircraft, as well as related services. Its family of leading brands includes the commercial aircraft manufacturer Airbus, the world's largest helicopter manufacturer Eurocopter, the space company EADS Astrium and MBDA, the world’s second largest missile company. EADS is the biggest partner in the Eurofighter consortium and heads the A400M military transport aircraft programme. The company has over 70 sites in Germany, France, Great Britain and Spain. It is active in many regions worldwide, including the U.S., Russia and Asia. Contact: Eckhard Zanger +49 (0)89 607 27961 Dr. Rainer Ohler +49 (0)89 607 34235 Roland Sanguinetti +33 (0)1 42 24 24 26 Miguel Sanchez +39 (0) 91 585 7264 |
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