Safran and MBDA in Talks for Roxel Sale

(Reuters) – French jet engine maker Safran (EPA:SAF) and European missile maker MBDA are discussing the potential sale of their tactical propulsion systems business, Roxel, according to La Tribune.

Both companies own 50% of Roxel, and the deal would involve MBDA purchasing Safran’s shares. This negotiation has reportedly been ongoing for over a year. Previous talks in 2013 for Roxel to buy back Safran’s shares did not succeed.

Roxel, established in 2003 from a merger between France’s Celerg and Britain’s Royal Ordnance Rocket Motors, focuses on designing, developing, manufacturing, and selling solid propulsion systems for various rockets and missiles. The company employs around 800 people in France and Britain.

Safran acquired its 50% stake in Roxel in 2011 through the purchase of SNPE’s propulsion activities. The following year, Safran set up its Herakles unit to specialize in solid propulsion, subsequently overseeing Roxel after merging with SME and SPS.

Acquiring Roxel would allow MBDA to boost production capabilities and reduce development times, according to La Tribune.

MBDA is a multinational joint venture comprising France’s Airbus, Britain’s BAE Systems (LON:BAES), each holding a 37.5% stake, and Leonardo of Italy, which owns 25%.

When approached by Reuters for comments on the report, an MBDA spokesperson declined to provide any information, while Safran stated it does not comment on market speculation.