FINCANTIERI AND NAVAL GROUP SIGN A JOINT VENTURE AGREEMENT
14 June 2019
Fincantieri and Naval Group sign a joint venture agreement
The “Poseidon” project takes shape
Following the announcement made on 23 October 2018, today Fincantieri and Naval Group signed the Alliance Cooperation Agreement, which sets out the operational terms for the incorporation of a 50/50 owned joint venture.
The agreement, which follows the approval by the Boards of Directors of the two companies, embodies the contents of the “Poseidon” project and paves the way towards a broader alliance aimed at reinforcing their military naval cooperation for creating a more efficient and competitive European shipbuilding industry.
The agreement has been signed by the CEOs of the two companies, Giuseppe Bono and Hervé Guillou, on board of the frigate “Federico Martinengo”, moored at the Naval Base of the Italian Navy in La Spezia. The vessel is part of the Italian-French FREMM program, which underlines the soundness of the twenty-year collaboration between the two countries, their industries and the national navies.
The incorporation of the JV, expected in the coming months and in any case before the end of the year, will be subject to customary conditions for this kind of transactions and to obtaining the necessary authorizations from the relevant authorities.
Through the 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.
Based on the agreement the company will be headquartered in Genoa with a subsidiary in Ollioules, France. The governance of the JV, as regulated in a shareholders’ agreement, envisages a Board of Directors of 6 members, 3 appointed by each company. For the first three-year term, Fincantieri will appoint the Chairman and the Chief Operational Officer, while Naval Group will appoint the Chief Executive Officer and the Chief Financial Officer..
Underlining the strategic value attributed by Fincantieri and Naval Group to this operation, Members of the Board will include Giuseppe Bono, appointed Chairman of the JV, and Hervé Guillou.
The Alliance represents a great opportunity for both groups and their ecosystems 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”.