PARIS-Wireless handset maker Sagem and aerospace propulsion and equipment company Snecma are examining the potential of a merger between the two companies.
A merger would greatly expand each company’s area of focus. “The expanded group would be a major player in the civil aviation, defense, telecommunications and electronics sectors, with a robust, well-balanced business portfolio,” Sagem said in a statement regarding the potential transaction.
Sagem’s supervisory board has already approved the merger, while Snecma’s board of directors plans to issue an opinion this week. For a merger, Sagem would first submit a public offer to purchase Snecma’s shares, and then the two companies would finish the merger upon approval of their 2004 financial statements.
