Airbus and Safran Strike Deal on European Rocket Joint Venture

Airbus Group SE and Safran SA on Thursday said they have concluded months of talks to establish a European rocket joint venture.

The two long-term partners in developing and building Europe’s Ariane 5 space launcher are pooling assets to become more effective in the face of increasing competition.

Airbus and Safran decided to join forces in 2014 and formally set up the Airbus Safran Launchers joint venture in January 2015 to gain efficiencies in the design and building of Europe’s next major rocket, the Ariane 6. Negotiating the final agreement between the two European aerospace giants, however, got bogged down in talks on how to reach parity between the companies.

Safran will make a €750 million ($834 million) cash payment to Airbus to gain an equal 50% stake, the companies said in a joint statement.

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