The European Aeronautic Defense and Space Company (EADS) and the technologies division of German Thyssenkrup announced Friday they had signed a deal to buy German naval electronics group Atlas Elektronik from British BAE Systems.

"With Atlas Elektronik, both companies will pool their competencies in platform, electronic and system activities in the naval field, thus creating a strong naval electronics and systems company," EADS and Thyssenkrupp said.

"With this step, we are making a significant contribution to the consolidation of the German naval system business, thus strengthening our position in the national and European consolidation process," said Stefan Zoller, chief executive of EADS Defense and Security Systems.

BAE said in a separate statement that EADS and Thyssenkrupp would pay a total of about 145 million euros (171 million dollars) cash for Atlas, while also taking on 72.4 million euros in pension liabilities.

EADS would hold 40 percent of Atlas Elektronik and ThyssenKrupp 60 percent. The transaction is to be closed next year.

Source: Xinhua