Sweden's SAAB eyes parts of S.Africa's Denel - report
STOCKHOLM (Reuters) - Swedish defence and aerospace group Saab is eyeing the acquisition of parts of loss-making South African defence group Denel, the head of Saab was quoted on Tuesday as saying.
The South African government said in December it was discussing partnership projects with Saab, but that privatisation was out of the question.
"We discussing the acquisition of various parts of Denel, but we could also find cooperation projects," Saab CEO Ake Svensson was quoted by newspaper Dagens Industri as saying.
The newspaper also quoted the head of information at Denel as saying confidential negotiations were going on.
Saab has been expanding its international activities as Swedish arms orders fall due to defence budget cuts.
Saab has already been active in acquisitions in South Africa, buying Aerospace Monitoring and Systems for 30 millon rand in December. In early 2005, it bought Grintek.
Denel in November posted a loss of 1.6 billion rand for fiscal 2004/2005.
The South African government said in December it was discussing partnership projects with Saab, but that privatisation was out of the question.
"We discussing the acquisition of various parts of Denel, but we could also find cooperation projects," Saab CEO Ake Svensson was quoted by newspaper Dagens Industri as saying.
The newspaper also quoted the head of information at Denel as saying confidential negotiations were going on.
Saab has been expanding its international activities as Swedish arms orders fall due to defence budget cuts.
Saab has already been active in acquisitions in South Africa, buying Aerospace Monitoring and Systems for 30 millon rand in December. In early 2005, it bought Grintek.
Denel in November posted a loss of 1.6 billion rand for fiscal 2004/2005.
posted by Marko at 1/31/2006 12:50:00 AM
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