Fincantieri-Stx-Naval Group: shipbuilding giant 50/50 controlled by Italy and France doesn't convince
According to Akros Bank's analysts this solution (only feasible one) wouldn't be worthwhile for the Italian company, appearing as a fall-back decision compared to former 100% control of Saint Nazaire yard
While waiting for the upcoming Italy-France summit, set in Line on September 27th, Bruno Le Maire, French Minister for the Economy, anticipated he will submit new proposals in order to fill the gap between the sale of Stx-France and a joint-control.
“I wish to seal an accord with our Italian friends by late September. For this reason I will start negotiations again with our Italian counterpart by the end of this week”, stated the Minister, although not illustrating any further detail.
Le Maire only reported that the new proposals would imply a co-operation in Naval Defence business, in essence Paris might evaluate establishing a bigger group, engaged in the construction of merchant and military ships, 50/50 controlled by France and Italy.
“With no accord, nationalization of the yard will still be valid but I don't think this will the future of Saint Nazaire. I don't think this would be the right choice”, concluded Le Maire.
“France urges including Naval Group in the deal so as to establish a 50/50 French-Italian group, while Italy wants to control Stx”, states Akros Bank's analysts as reported by MF-MilanoFinanza.
“Based on our analysis Fincantieri's cruise business is bigger than Stx's: 2.5 billion Euro versus 1 billion. On the other hand, Fintantieri's military business is smaller than Naval Group's: 1.2 billion Euro versus 3 billions, boasting 11 billion Euro backlog that we foresee growing faster and doubling in four/five years. The French design not to merge exclusively cruise business but also the military branch seems to be appealing Italy, thus potentially reaching a wider agreement by late September”, state the analysts.
The key element in this affair, still according to Akros, is the control of Saint Nazaire's yard (STX France): “Fincantieri wants to get 100% control of the yard, while France hampers the deal, also due to political reasons. A newco holding the European civil-naval shipbulding group (50/50 France-Italy), namely Fincantieri-Stx-Naval Group might be the only feasible solution, however Italy isn't appealed by such a deal, which appears a second best!”, analysts said.