Airbus to Sell Off Business Units

Airbus to Sell Off Business UnitsAirbus to Sell Off Business Units

Airbus Group has unveiled plans to sell half a dozen businesses with combined annual revenues of around 2 billion euro ($2.6 billion), simplifying its Defense and Space division to focus on warplanes, missiles, launchers and satellites, Reuters reported.

Announcing the results of a portfolio review, Europe's largest aerospace group signaled a break with previous efforts to diversify into security activities and a halt to investment in defense electronics, in which it lacks the scale of rivals.

Europe's defense industry is struggling as cash-strapped governments cut back on military spending. EADS, later renamed Airbus, responded in 2012 by trying to merge with Britain's BAE Systems, but the deal was blocked by Germany.

The group said on Tuesday it would sell its Professional Mobile Radio secure communications assets and confirmed plans to sell a 49-percent stake in submarine supplier Atlas Elektronik, unwinding two efforts at diversification embarked on nine years ago. It said it would also consider selling other commercial and non-governmental satellite communications activities.