Airbus Safran Launchers (ASL) has raised its stake in Arianespace from around 39% to roughly 74% after concluding an agreement with French space agency CNES to acquire its shares in the launch provider. The transfer was agreed to in principle last…
Airbus Safran Launchers (ASL) has raised its stake in Arianespace from around 39% to roughly 74% after concluding an agreement with French space agency CNES to acquire its shares in the launch provider.
The transfer was agreed to in principle last year when ASL – a joint venture between Airbus Defence and Space and Safran – was created.
ASL declined to comment on how much it had paid for the 34.68% stake. La Tribune reported the joint venture could pay up to €130m (US$146m), depending on Arianespace’s future performance, although added that the floor price was less than €100m (US$113m).
Another milestone in the industrialisation of the European space sector, ASL said that the change in governance at Arianespace would allow it to become more competitive and more efficient for its customers. ASL and Arianespace will look to find operational synergies.
“This announcement is an important step as it will enable us, in agreement with the other European industrial shareholders, to optimise the industrial sector right through to the launch operator while retaining all the key factors of Arianespace’s success,” said Alain Charmeau, CEO of ASL.
Stéphane Israël, CEO and chairman of Arianespace, said: “The agreement between Airbus Safran Lauchers, the French State and the CNES reflects the logic behind the remodelling of the launcher industry that was decided in Luxembourg last December at the ESA ministerial-level conference.”
“It marks a major step forward on the road that should lead to Ariane 6,” he said.
Israël said the change would help Arianespace in its mission to guarantee independent access to space for Europe while helping it in the commercial launch market.
ASL said the transfer of the CNES shares will close in the coming months following regulatory approvals. It is unclear whether the JV will look to further increase its stake in Arianespace. The remaining 26% of its shares are in the hands of the main manufacturers from 10 different European countries which contribute to the Ariane and Vega launch vehicles.
The minority investors are German group MT Aerospace, with 8.26%; Italy’s Avio, with 3.38%; Belgian aerospace business SABCA, with 2.71%; Swiss tech company RUAG Schweiz, with 2.67%; French multinational Air Liquide, with 1.89%; and Sweden’s GKM Aerospace. Airbus DS subsidiaries in Spain and the Netherlands retain a combines 3.98%. The last few investors – from Denmark, Spain, France, Norway and Sweden – hold very minor stakes.
Arianespace will continue to operate independently, at least for now, from its head office in Evry, outside Paris. It also has offices in Washington DC, Singapore and Tokyo.
Initially unveiled one year ago, ASL pooled Airbus DS and Safran’s space launcher activities to cut costs and improve efficiencies as it begins development on Ariane 6, the successor rocket to the industry stalwart Ariane 5. The new launcher is expected to be operational by 2020.
The vertical integration strategy is designed to enable Europe to better compete with the pricing model of privately-held US company SpaceX, which has eaten into the market share of the industry’s long-standing government-backed launch providers.
Another part of the makeover was announced last week when Europe’s answer to resusable rockets was unveiled by Airbus DS.
Called Adeline, Airbus’ concept is designed to allow the safe recovery of its launch vehicles’ main engines and avionics, which represent between 70% and 80% of the value of its rockets, and is scheduled to be ready in 2025. Adeline will be developed in-house by Airbus and then implemented by ASL.
