Germany has not cleared sale of Airbus defence electronics arm to KKR, Carlyle - report

Germany's government has not approved a sale of Airbus Group's (EPA:AIR) defence electronics business to US private equity firms KKR (NYSE:KKR) and Carlyle (NASDAQ:CG), government sources told Reuters on Tuesday, thus denying an earlier report in daily Handelsblatt.

According to the report by the German daily, Germany has approved the sale of the unit to the two buyout firms and Airbus is now close to signing a deal. Sources familiar with the negotiations told Handelsblatt that the two private equity firms had offered more than EUR 1.3 billion (USD 1.4bn) for the business.

A government source, however, told Reuters that the report was inaccurate. A spokeswoman for the economic ministry only told the news agency that Airbus had approached the government to disclose its intention to sell part of the defence arm. No further details were provided.

Germany wants to examine whether the sale would affect security technologies and competences, as well as jobs.

The sale is in line with Airbus's strategy to offload certain assets worth a combined EUR 2 billion in revenue, and focus on its aeronautics and space business amid low defence spending in Europe.

(EUR 1 = USD 1.083)

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