In a surprise move, France has announced it will be buying not 9 percent of shipyard Chantiers De l'Atlantique and making it state-run but 33.34 percent, a statement by French President Nicolas Sarkozy's government said last week.
The move will cost France $140 million. Twenty-five percent of the shares will come from STX Europe, a division of South Korean shipbuilders STX. The other 9 percent comes from French conglomerate Alstom. STX will now still own 50.01 percent of the shipyard, while Alstom holds 16.65 percent.
However, the French government may have to pay a further $108 million for its increased holding, although such additional sums would not have to be paid until 2012.
The French government wants to increase its interest in Chantiers De l'Atlantique because the shipyard is expected to build France's Porte-Avions 2 anticipated second aircraft carrier to complement its only current operational one, the Charles De Gaulle. So Paris wants to make sure it has a direct say in directing how the shipyard is run.
However, the construction of this anticipated nuclear-powered aircraft carrier has been deferred. Its development may be resumed at a later stage. If the program is resumed, Chantiers de l'Atlantique would be responsible for building the ship's hull while French shipbuilder DCNS would build the superstructure and systems integration, Defense News reported last week.
Sarkozy said last week he hoped that DCNS and Chantiers de l'Atlantique eventually would merge to form a single company.
Chantiers de l'Atlantique is expected to use the new funds it will receive from the French government to develop its own infrastructure and create a financial reserve fund. STX has committed to refrain from competing with Chantiers de l'Atlantique in its core activities.
Share This Article With Planet Earth
