Fincantieri and Naval Group signed the Alliance Cooperation Agreement following the announcement made on 23 October 2018, which starts the operational terms for the incorporation of a 50/50 owned joint venture.
The agreement has been approved by the Boards of Directors of the two companies, and it embodies the contents of the “Poseidon” project and covers the broader alliance which aimed at reinforcing their military naval cooperation for creating a more efficient and competitive European shipbuilding industry.
The CEOs of the two companies have signed the agreement, Giuseppe Bono and Hervé Guillou, on board of the frigate “Federico Martinengo”, secured at the Naval Base of the Italian Navy in La Spezia. The vessel is part of the Italian-French FREMM program, which marks the robustness of the collaboration of twenty-year between the two countries, their industries and the national navies.
It is expected that the incorporation of the JV, will be subjected in the coming months or in any case before the end of the year. It will be subjecedt to customary conditions for this kind of transactions and to obtaining the necessary authorizations from the relevant authorities. Through this joint venture, Fincantieri and Naval Group will:
- share best practices between the two companies;
- jointly conduct selected Research and Development activities;
- optimize procurement processes;
- jointly prepare offers for binational programs and export markets.
The company headquarter will be in Genoa with a subsidiary in Ollioules, France according to the agreement. As regulated in a shareholders’ agreement, the governance of the JV predicts a Board of Directors of 6 members, 3 appointed by each company. The Chairman and the Chief Operational Officer for the first three-year term, while Naval Group will appoint the Chief Executive Officer and the Chief Financial Officer..
A great opportunity has been represented for both the groups and their ecosystems by the Alliance to enhance their ability to better serve the French and Italian navies, to capture new export contracts, to develop new technologies and, ultimately, to improve the competitiveness of the naval sectors of both countries.
On the sidelines of the signing Giuseppe Bono and Hervé Guillou stated: “We are very satisfied with the results achieved and, above all, we would like to thank our Governments which in the last few months have worked side-by-side with us, and continue to do so, with the aim of finalizing an agreement that will ensure the protection of sovereign assets while promoting cooperation between the two teams. This commitment will allow us to better serve our Navies, provide the appropriate support for common export operations and effectively lay the foundations for the consolidation of the European defense industry”.