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Euractiv
11-07-2025
- Business
- Euractiv
Indra moves to dominate Spain's defence sector, but raises conflict-of-interest concerns
MADRID – Spanish technology and defence giant Indra began formal merger negotiations with defence company Escribano Mechanical & Engineering (EM&E) on Thursday, a move that would consolidate the country's growing defence sector. The proposed deal has sparked serious conflict-of-interest concerns in Spain, however, as Indra President Ángel Escribano is also a co-owner of EM&E – along with his brother, Javier. The situation has raised eyebrows in Madrid, with critics suggesting that Escribano may in essence be facilitating the acquisition of his own company. According to consultancy reports commissioned by Indra, EM&E is valued at €1.5 billion. Indra had not responded to questions from Euractiv as of publication time. The deal comes amid Indra's broader ambition, outlined in its 2024 strategic roadmap, to become Spain's dominant national defence champion within the next decade. The company is well-positioned to benefit from the recent push by Spanish Prime Minister Pedro Sánchez government to boost defence spending, announced last April. Currently, defence contracts account for 12% of Indra's total revenue. Merging with EM&E, one of Spain's leading private defence contractors, would reinforce Indra's defence portfolio, which already includes majority stakes in Tess Defence (51%) and ITP Aero (9.5%), as well as new strategic partnerships with German armaments giant Rheinmetall. In breach of the law? EM&E, meanwhile, is Indra's largest private shareholder with a 14.3% stake. The state-owned SEPI fund holds another 28%, raising concerns about anti-competitive behaviour and market concentration that could potentially breach Spanish and European Law. "From a competition law perspective, the possible merger raises significant questions about market access and fair competition," Francisco Marcos, a professor at Madrid's IE Law School, told Euractiv. He warned of potential 'foreclosure effects' and 'self-preference in public tenders', especially as both firms already play major roles as state contractors. Marcos stressed the need for thorough regulatory scrutiny to ensure "efficiency and competitive plurality" in a strategically vital and publicly funded sector. Technology firm SAPA, Indra's third shareholder (7.94%) has come out against the merger, and independent board members reportedly also plan to vote against the transaction. Some considered resigning from the board over the potential conflict of interest and the risk of legal liability in potential shareholder lawsuits. El País reported on Thursday evening after the initial talks that Indra will create an independent commission to decide on the purchase, to 'guarantee good corporate governance'. Indra's executive board is set to vote on the merger on 23 July. (cs, bts)
Yahoo
14-05-2025
- Automotive
- Yahoo
Competitors for Spain's future 6x6 armored vehicle face off in Madrid
PARIS — Defense manufacturers eyeing a possible Spanish order for a new 6-wheeled armored vehicle flocked to Madrid this week for the biannual Feindef defense show, presenting new designs or agreeing to work together on armor for the country's land forces. Spain's Technology & Security Developments and Grupo Oesía, Turkey's FNSS Savunma Sistemleri and Belgium's John Cockerill Defense signed a memorandum of understanding to provide a six-wheeled cavalry vehicle for the Spanish Army, the companies said in a joint statement on Wednesday. TDS, Oesía, FNSS and John Cockerill said they aim to offer the Spanish Army an off-the-shelf solution, with local logistics support and life cycle management. Their offer is specifically designed for cavalry operations and providing fire support for expeditionary forces, the four firms said. Spain's Ejercito de Tierra operates the 6x6 BMR, a more than four decades-old 15-ton vehicle built by Santa Bárbara Sistemas, now part of General Dynamics European Land Systems, or GDELS. The army is replacing at least part of its wheeled fleet with the 8x8 Dragón, a heavier and more expensive vehicle that's faced delivery delays and which local media report has suffered mechanical issues. Indra acquired a majority stake in the consortium that makes the Dragón in October, buying shares from partners GDELS, SAPA and Escribano Mechanical and Engineering, or EM&E. Separately, Spain's EM&E presented the Ferox 6x6 armored vehicle at Feindef, after an agreement in February with NIMR Automotive, a unit of the United Arab Emirates' EDGE, to build six-wheeled armored vehicles in Spain. The agreement provides for transfer of knowledge and 'progressive national industrialization' of the vehicle, with design authority in Spain, EM&E said. 'This vehicle marks the beginning of a new stage for EM&E Group in the field of armored vehicles,' Chief Executive Fernando Fernández said. Meanwhile, Rheinmetall and Indra on Tuesday announced a memorandum of understanding to cooperate on armored-vehicle projects for the Spanish armed forces. With the MoU, the companies 'start a strong alliance to support the efforts of the Spanish Armed Forces to modernize their fleet of combat vehicles,' said Eduardo Veen Martinez, the CEO of Rheinmetall's tactical vehicles business unit. For its part, GDELS presented its Pandur 6x6 EVO armored vehicle at the defense show in Madrid, with the company saying its presence as Feindef reflects a 'firm commitment' to the Spanish armed forces and the government's defense industrial strategy. The company also unveiled a new tracked artillery system at the show called the Ascod Nemesis, consisting of a 155mm artillery gun module from KNDS mounted on an Ascod tracked chassis by GDELS.
