Cruise ship builder Fincantieri is to take effective control of STX France under a shared ownership agreement, French Government officials said, following an earlier dispute between the two governments over a deal.
Last week’s agreement will see Fincantieri effectively hold a 51% stake in STX France.
As part of the deal, the two governments will explore the creation of a Franco-Italian naval defence group, merging French military shipyards company Naval Group with Fincantieri, the French Government said, similar to the Siemens/Alstom deal announced earlier.
Under the terms of the agreement, Fincantieri will take a 50% stake in STX. The French state will hold 34.34%, Naval Group 10%, STX staff 2% and STX local suppliers 3.66%.
In order for Fincantieri to take effective control, the French Government will lend it a 1% stake. The French will have the right to hold back on the deal if Fincantieri does not honour commitments on jobs, governance or intellectual property.
In May, Fincantieri had agreed to pay €79.5 mill for a majority stake in STX France, which was put up for sale following the collapse of South Korean parent STX.
But amid concerns about jobs and the shipbuilder’s strategic importance, the French Government pulled the deal.
Naval Group, formerly DCNS, designs and builds France’s submarines and surface ships. The company is owned by the French state, while French defence company Thales holds a 35% stake.
STX’s St Nazaire shipyard is the only French yard able to build aircraft carriers and other large warships, making it a strategic national asset..