Safran in talks with MBDA over Roxel's stake, La Tribune reports

(Reuters) - French jet engine maker Safran (EPA:SAF ) and European missile maker MBDA are in talks over the potential sale of tactical propulsion systems business Roxel, French weekly La Tribune reported on Monday.

Both companies own 50% of Roxel, and the proposed deal would have MBDA buying the remaining shares from Safran, the newspaper said, noting the talks have been going on for more than a year.

Previous negotiations over Roxel buying back Safran's shares fell through in 2013, it added.

Roxel, established in 2003 via a merger between France's Celerg and Britain's Royal Ordnance Rocket Motors, designs, develops, manufactures and sells solid propulsion systems for all types of rockets and tactical and cruise missiles. It currently employs around 800 people in France and Britain.

In 2011, Safran acquired 50% of Roxel after buying SNPE's propulsion activities. A year later, Safran launched its Herakles unit, now overseeing Roxel, specialising in solid propulsion following a merger between SME and SPS.

The acquisition of Roxel would enable MBDA to enhance production and trim development cycles, La Tribune added.



MBDA is a multinational joint venture between France's Airbus, Britain's BAE Systems (LON:BAES ) - each with a 37.5% stake - and Italy's Leonardo, which owns the remaining 25%.

When asked by Reuters about the report, a spokesperson for MBDA declined to comment, while Safran said it does not comment on market speculation.

Source: Investing.com