Fincantieri has reached a preliminary deal to buy a large minority stake in STX France, adding to the Italian shipbuilding giant's stable of cruiseship building yards.
France's Economy Ministry said Thursday that it has approved an agreement in principal that will see Fincantieri take a 48% stake in the Saint-Nazaire yard, which is currently owned by STX Shipbuilding & Offshore.
The deal will also see French government-controlled shipbuilder DCNS buy 12%, while Italian investment firm Fundazione CR Trieste will pick up 7%.
Paris keeps 33% stake
The government will keep its 33% holding in the shipbuilder.
No financial details were revealed.
STX France has 14 cruiseships on its orderbook for owners MSC Cruises, Royal Caribbean Cruises, TUI Travel and Norwegian Cruise Line, according to data from Clarksons.
Fincantieri has been seeking to strike a deal to buy STX France out of its parent company's court-supervised restructuring for some time, and a court in Seoul approved the Italian giant's lone bid in January.
But since then, talks over a transaction have hinged on reaching an agreement that Paris would approve.
Some of the talks have focused on job protections for the final major bastion of France's commercial shipbuilding industry.
Investments required
"Fincantieri proposes an ambitious industrial project that will reinforce the shipyard in its core cruiseship business and pursue diversification, notably in marine energy," the Economy Ministry said today.
Authorities said that they demanded a balanced shareholder mix, with Fincantieri in the minority and with DCNS involved to ensure naval shipbuilding capacity.
And France demanded a 20-year veto right on reduction of activity of any work sites or offices at the yard, or the transfer of know-how or intellectual property.
