Uncertainty Over Weapon Projects Forces BAE to End JV Tie up in India

摘要

In February, uncertainty over India's $11 billion Futuristic Infantry Combat Vehicle (FICV) and 155mm/52 calibre gun project was the reason behind BAE Systems of United Kingdom deciding to end its equity based relations with India's Mahindra & Mahindra in March. The two companies had forged an alliance in 2009 to form a land based defence company named Mahindra Defence Systems in which India's Mahindra & Mahindra kept 74 per cent equity and the remaining 26 per cent was kept by BAE Systems of United Kingdom. BAE Systems decided to sell also its 26 per cent its equity to Mahindra Defence systems at a price to be decided later and the decision was a strategic decision said an executive of Mahindra Defence Systems.