Fincantieri and Naval Group Unite for a Powerful Strategic Partnership
On 23 October 2018, it was announced that Fincantieri and Naval Group have successfully concluded the Alliance Cooperation Agreement, outlining the operational conditions for a joint venture equally owned by both parties.
This agreement, which received approval from the Boards of Directors of both firms, captures the essence of the “Poseidon” initiative and sets the stage for a wider collaboration aimed at advancing their military naval partnership, fostering a more robust and competitive European shipbuilding industry.
The agreement was signed by the CEOs of both organizations, Giuseppe Bono and Hervé Guillou, aboard the frigate “Federico Martinengo,” located at the Italian Navy’s Naval Base in La Spezia. This ship is part of the Italian-French FREMM program, underscoring the depth of the twenty-year alliance between the two nations, their industries, and their respective navies.
The establishment of the joint venture is expected in the upcoming months, certainly by the year’s end, conditional upon the standard prerequisites for such arrangements and obtaining the necessary licenses from the relevant authorities.
Through this collaborative venture, Fincantieri and Naval Group aim to:
- share best practices between the two organizations;
- work jointly on selected Research and Development projects;
- enhance procurement operations;
- cooperate on proposals for binational programs and export markets.
As per the agreement, the headquarters will be located in Genoa, with an additional office in Ollioules, France. The governance structure of the joint venture, as detailed in a shareholders’ agreement, will consist of a Board of Directors made up of 6 members, with 3 appointed by each entity. For the initial three-year term, Fincantieri will appoint the Chairman and Chief Operational Officer, while Naval Group will choose the Chief Executive Officer and Chief Financial Officer.
Highlighting the strategic significance of this initiative, Fincantieri and Naval Group will include Giuseppe Bono, designated as Chairman of the joint venture, alongside Hervé Guillou on the Board.
The Alliance presents a substantial opportunity for both companies and their ecosystems to enhance their capabilities in serving the French and Italian navies, secure new export agreements, develop pioneering technologies, and ultimately bolster the competitiveness of the naval sectors in both nations. Following the signing, Giuseppe Bono and Hervé Guillou stated: “We are profoundly satisfied with the achievements made and wish to express our appreciation to our Governments, which have worked closely with us over the past few months, and continue to do so, aiming to finalize an agreement that will protect sovereign assets while promoting collaboration between both teams. This commitment will empower us to better support our Navies, facilitate shared export efforts, and lay the groundwork for reinforcing the European defense industry.”
