Leonardo’s concerns about the STX matter

Rome - The sense is that the role of Leonardo, in terms of industrial consequences, was “initially underestimated” in the context of the Fincantieri-STX France-Naval Group operation. “Italy set it out in a way that we might call fanciful, not really based on facts,” a source of the Il Secolo XIX-the MediTelegraph pointed out,” but our people know how to bang their fists on the table and the Italian government is taking action.” “The goal is to create a solution that will prevent the Italian economy from losing out,” another source pointed out. They say that at the main office of Leonardo, formerly Finmeccanica, in Piazza Montegrappa, there is an atmosphere of “calm anticipation and careful observation.” The aerospace industrial and defence giant controlled by the Italian treasury, which has manufacturing facilities in Liguria (formerly Selex ES, and Oto Melara), is more than a careful observer in this matter. After Fincantieri won the tenders for 66% of STX, after Macron ripped up those tenders by (temporarily) nationalising the shipyard, after the freeze between Rome and Paris led to the extended three-way agreement (Fincantieri-STX-Naval Group) with Fincantieri destined to lead the civilian shipbuilding and Naval Group to continue with military shipbuilding - someone brought their attention to the matter of the defence systems subcontractors. And after a couple of weeks, meetings have taken place and contacts have been made between Leonardo and the Ministers of Defence and Economic Development, Roberta Pinotti and Carlo Calenda. In recent days, in light of the bilateral agreement between Italy and France planned for 27 September, a working group was created to develop the outlines of the industrial plan for that agreement in greater detail. The Italian aerospace and defence group wants to be involved, and to play a role. And the reason is simple: France’s Thales, which is Leonardo’s leading competitor, is the second largest shareholder in Naval Group, with a 35% stake, after the French State, which holds 62.4%. A European military shipbuilding site controlled by Naval Group would already have the systems provider in house: Thales could become the sole interlocutor for electronics, to the detriment of Leonardo. The operation by C.E.O. Alessandro Profumo and some defence circles to raise Minister Pinotti’s awareness of the matter set the machine in motion. Now it is a matter of understanding which road to take. Some speak of Leonardo taking a stake in the company: a source close to the dossier explained, “In reality, the overlapping stakes are not sufficient on their own in the absence of provision contracts, partnerships and precise obligations. We must build an operation in which Italy will not lose out. On the military side, the presence of Thales in Naval Group is obviously a problem. But on the civilian side, as well, it is difficult to imagine that Fincantieri could have control over a company with a 50-50 stake through governance alone.”