• Kongsberg is developing the Joint Strike Missile in conjunction with Raytheon for use with the F-35 Lightning II. The aircraft will serve in both the Norwegian and Australian Air Forces and Australia is involved in the development of JSM.
    Kongsberg is developing the Joint Strike Missile in conjunction with Raytheon for use with the F-35 Lightning II. The aircraft will serve in both the Norwegian and Australian Air Forces and Australia is involved in the development of JSM.
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Kongsberg has entered into an agreement with the Finnish state for the purchase of 49.9 per cent of the shares in Patria worth €272 million. Patria is Finland’s leading defence supplier and owns 50 per cent of the shares in the Norwegian company Nammo.

The partnership will be a leading defence supplier in the Nordics, and a considerable supplier on the European defence market, with total gross revenues of 13.4 billion Norwegian kroner (NOK) of in 2015.

"By forming this industry partnership we're taking a proactive step to meet the ongoing consolidation in the defence industry," Walter Qvam CEO Kongsberg said. 

"This transaction entails a significant strengthening of our Nordic and international position, it provides strengthened profitability and growth opportunities, and is an important step in the strategy for our defence businesses."

Patria has approximately 2,800 employees and had revenues of €428 million (NOK 3.8 billion) in 2015. The company is Finland’s leading defence supplier, and has a broad and modern product portfolio.

The Norwegian state and Patria each holds a 50 per cent share in Nammo. Nammo has approximately 2,200 employees and had revenues of NOK 3.8 billion in 2015. The company develops and produces high technology products within ammunition and rocket engines for defence and civilian applications.

"As a partnership, Kongsberg, Patria and Nammo hold both complementary and world leading products as well as key geographic areas that strengthen each other. This, combined with Patria’s strong position in Finland and Kongsberg’s strong global alliances and position in Norway, makes us significantly stronger together in a growing global defence market," Qvam said.

"This partnership will be a larger and stronger supplier to the Norwegian and Finnish armed forces with more than 7,000 employees and total gross revenues of 13.4 billion Norwegian kroner. We have a close cooperation today, including on air defence and missiles, and this cooperation will be strengthened further. Significant opportunities within other areas, such as maintenance and aviation, will also emerge, Qvam said.

The completion of the transaction is expected in the second quarter of 2016, and is subject to normal closing conditions, for example approval from relevant authorities. 

 

 

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