Safran and Thales approaching deal on asset swaps

The consolidation of the French aerospace industry is expected to take another step shortly, with reports that Thales and Safran are nearing a deal on an asset swap. Safran shares were up 3.2% yesterday, as aerospace shares rose generally, particularly in Europe.

The reports come a few weeks after Dassault Aviation stated that the two companies have reached an in principle agreement with each other on the swaps of certain business units and other assets and were down to negotiating over monetary compensation. Dassault is the second largest shareholder in Thales.

French interiors manufacturer Zodiac was up 1.7%, while EADS was also up 1.7%.

Selected Aerospace daily share price movements (% change): 10-Jun-2011