Airbus has abandoned discussions to purchase the BDS cybersecurity division of France's Atos, a move that caused Atos shares to tumble by over 20%. This marks the second time in a year that the European aerospace giant has withdrawn from negotiations to acquire Atos assets, following strong investor opposition.
The decision intensifies pressure on Atos, a troubled software company specialising in sensitive technologies deemed critical by the French government. Recent profit warnings, management instability, and the recent failure of another asset sale have further strained the company.
Both companies issued brief announcements confirming the termination of talks. Atos stated it would now explore "strategic alternatives" while prioritising French government imperatives. Airbus cited "careful consideration" as the reason for its decision but provided no further explanation. Reuters sources familiar with the matter suggest concerns about complexity and Atos' internal issues were factors, while others expressed surprise at the move.
Investor Reactions
Airbus investors appeared relieved, as shares rose 1.8%. The termination eliminates the risk of what some saw as a politically motivated rescue and frees up Airbus for potential shareholder returns.
Without the deal, valued at an estimated 1.8 to 2.0 billion euros, Atos' financial position becomes more precarious. Some industry observers speculate that Thales, a French defense electronics group, might become a potential buyer, despite repeatedly denying interest in the past.
This latest setback adds to Atos' recent string of misfortunes, including a plummeting stock price in the face of management missteps and a failed takeover bid for U.S.-based DXC in 2021. In February, negotiations with Czech investor Daniel Kretinsky regarding Atos' legacy operations also fell through.
