The Italian shipbuilder Fincantieri signed Friday an agreement to buy 50% of the share capital of France's STX Shipyard, for 59.7 million euros.
This takeover is part of the agreement in principle reached in September between France and Italy, which put an end to months of tension between the two countries.
"The signing takes place after the resolution of the share purchase agreement previously signed between Fincantieri and STX Europe on May 19, 2017 as a consequence of the exercise by the French State of its pre-emption right for the acquisition of the entirety of STX France share capital on July 28, 2017 and follows the signing of the share purchase agreement between the French State and STX Europe," said a statement from the company.
The acquisition by Fincantieri is subject to the closing of the transaction between the French State and STX Europe and to customary conditions for this kind of transactions.
The agreement provides for a purchase price of euro 59.7 million for Fincantieri, which shall be paid through available financial resources.
The signing is part of the agreement announced on September 27, 2017 by the Italian and French Governments regarding the future shareholding structure of STX France.
Such agreement envisages the participation of Naval Group as a shareholder of STX France and represents an important first step towards the creation of a future alliance in both cruise and military naval sectors.
Pursuant to this agreement, upon closing the parties will also execute the shareholders agreement and the stock lending agreement relating to 1% of the share capital of STX France which will be lent by APE to Fincantieri upon terms and conditions already agreed between the parties.
According to Reuters, Paris and Rome are exploring the creation of a Franco-Italian naval group, merging French military shipyards firm Naval Group with Fincantieri, a bid to ward off the threat from industrial powers such as China and the United States.