Matra BAe Dynamics

Matra BAe Dynamics was an Anglo-French defence company created in August 1996 through the combination of missile activities from France's Matra Hautes Technologies and the United Kingdom's BAe Dynamics, then a division of British Aerospace. Structured as a 50/50 joint venture, it brought together substantial guided-weapons capabilities from two major European aerospace and defence groups. The venture was established against a backdrop of European consolidation in the missile sector. British Aerospace had earlier attempted to combine its missile business with the missile activities of France's Thomson-CSF, now known as Thales Group. That proposed company, announced in 1989 under the name Eurodynamics, was ultimately abandoned after an extended review involving monopoly and competition concerns. The later Matra–BAe arrangement provided a different route to cross-border industrial cooperation and created a significant European competitor in guided weapons. During its roughly five years of independent existence, Matra BAe Dynamics was described as Europe's largest guided-weapons company and the world's third-largest company in that field. Its business was focused on missile systems and related guided-weapon activities rather than on a broad consumer-facing product portfolio. The company also expanded its European industrial links in 1997 by acquiring a 30 percent interest in LFK, a German missile company. Corporate restructuring within its parent groups changed the ownership landscape in 1999. The remaining half of Matra Hautes Technologies' missile business, known as Matra Missiles, was combined with the missile systems division of Aérospatiale to form Aérospatiale Matra Missiles. Following the wider merger between Aérospatiale and Matra Hautes Technologies, Aérospatiale-Matra also acquired Matra's 50 percent share in Matra BAe Dynamics. Matra BAe Dynamics did not continue as a standalone company for long after these changes. In December 2001, it merged with Aérospatiale Matra Missiles and the missile activities of Alenia Marconi Systems. The resulting group was MBDA, a major European missile and guided-weapons company. Matra BAe Dynamics is therefore best understood as a predecessor organization and industrial lineage within MBDA rather than as an active independent brand. Its historical importance lies in helping consolidate British, French, and wider European missile capabilities during the period of post-Cold War defence-industry restructuring.

Matra BAe Dynamics emerged from European defence-industry consolidation in the 1990s. Its immediate origins lay in the missile businesses of Matra Hautes Technologies in France and BAe Dynamics in the United Kingdom. Matra Hautes Technologies was the aerospace, defence, and telecommunications arm of the wider Matra conglomerate, while BAe Dynamics was the guided-weapons division of British Aerospace. In August 1996, selected missile activities from the two organizations were combined in a 50/50 joint venture named Matra BAe Dynamics. The venture followed an earlier, unsuccessful effort by British Aerospace to combine its missile business with Thomson-CSF. That proposed Anglo-French company, announced in 1989 as Eurodynamics, failed to proceed after more than a year of monopoly investigations. The eventual Matra–BAe structure reflected the continuing pressure for European defence companies to cooperate and consolidate while preserving national industrial capabilities. Matra BAe Dynamics focused on guided weapons and missile systems. Although its independent existence lasted only about five years, it rapidly became a major European defence company. Contemporary descriptions characterized it as Europe's largest guided-weapons company and the third-largest worldwide. In 1997, it broadened its European corporate relationships by purchasing a 30 percent share in LFK, a German missile company. A major change occurred in 1999 when Matra's wider corporate structure was reorganized. The portion of Matra Hautes Technologies' missile business that was not already in Matra BAe Dynamics, known as Matra Missiles, was combined with Aérospatiale's missile systems division. This created Aérospatiale Matra Missiles. The merger of Aérospatiale and Matra Hautes Technologies also resulted in Aérospatiale-Matra taking ownership of Matra's 50 percent interest in Matra BAe Dynamics. The final stage came in December 2001. Matra BAe Dynamics merged with Aérospatiale Matra Missiles and the missile activities of Alenia Marconi Systems. These businesses formed MBDA, which became the continuing corporate platform for the combined European missile operations. Matra BAe Dynamics consequently ceased to exist as a separate company, but its activities and industrial heritage were incorporated into MBDA.

• 2001

  Integration into MBDA

  [1]Matra BAe Dynamicsen.wikipedia.org

  Matra BAe Dynamics, Aérospatiale Matra Missiles, and Alenia Marconi Systems' missile activities merged to form MBDA.

• 1999

  Aérospatiale Matra Missiles is formed

  [1]Matra BAe Dynamicsen.wikipedia.org

  Matra Missiles combined with Aérospatiale's missile systems division, while wider corporate changes transferred Matra's interest in Matra BAe Dynamics to Aérospatiale-Matra.

• 1997

  Investment in LFK

  [1]Matra BAe Dynamicsen.wikipedia.org

  Matra BAe Dynamics acquired a 30 percent share in LFK.

• 1996

  Matra BAe Dynamics is established

  [1]Matra BAe Dynamicsen.wikipedia.org

  Missile activities from Matra Hautes Technologies and BAe Dynamics were combined in a 50/50 Anglo-French joint venture.

• 1989

  Eurodynamics merger proposal is announced

  [1]Matra BAe Dynamicsen.wikipedia.org

  British Aerospace and Thomson-CSF announced plans for a combined missile company called Eurodynamics. The proposal later collapsed after an extended monopoly investigation.

A major European guided-weapons and missile-systems company formed to combine British and French defence capabilities through a cross-border joint venture.

• Defence systems

  Guided missile systems

  Matra BAe Dynamics' principal business was the development and manufacture of guided weapons and missile systems. The available reference material does not identify a sufficiently complete product-by-product catalogue, but the company's position within the European defence industry placed it among the leading suppliers of guided missile capabilities.

• 2001

  Merger forming MBDAM&A

  Background

  Further consolidation followed the creation of Aérospatiale Matra Missiles and the reorganization of Matra's ownership interests.

  Action taken

  Matra BAe Dynamics merged with Aérospatiale Matra Missiles and the missile activities of Alenia Marconi Systems.

  Aftermath

  MBDA was established as the successor group, ending Matra BAe Dynamics' existence as an independent company.

  Source

• 1997

  Acquisition of a minority stake in LFKM&A

  Background

  The company sought to strengthen its position within the European missile sector and develop links beyond its British and French ownership base.

  Action taken

  Matra BAe Dynamics acquired 30 percent of LFK.

  Aftermath

  The investment expanded the venture's participation in European missile-industry cooperation.

  Source

• 1996

  Creation of the Matra–BAe guided-weapons joint ventureM&A

  Background

  European missile manufacturers were pursuing cross-border consolidation, following the earlier proposed Eurodynamics combination of British Aerospace and Thomson-CSF.

  Action taken

  Matra Hautes Technologies and BAe Dynamics combined selected missile activities in a jointly owned Anglo-French company.

  Aftermath

  The new company became one of Europe's largest guided-weapons businesses and later formed part of the industrial combination that created MBDA.

  Source

1. 1Matra BAe Dynamicsen.wikipedia.org