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Italy's Fincantieri and Leonardo shares are up thanks to the news spread about the expected Egyptian deal that might reach $18 billion..
Thanks to the news spreading about the expected Egyptian deal, the shares of Fincantieri and Leonardo, Italy, are rising after a massive downturn in the negative economic consequences of the Corona epidemic.
In addition to the Bergamini class FREMM frigates contract, which is estimated at 1.2 billion euros with Fincantieri, analysts estimate that this figure could reach 3.5 billion euros if the subsequent contract is completed by 4 additional frigates of the same type with a total of 6 frigates.
And in the event that the contract for 20 coastal missile launches / ships on the coastal mission (including the transfer of technology for the Alexandria arsenal) is completed, analysts estimate the value of the contract at 6.5 billion euros, on the assumption that these pieces will not be missile launches - as previously thought - rather they will be of the The new category “PPA”, or what is known as the “multi-purpose coastal mission ship Pattugliatore Polivalente d'Altura” with a value of 300 million euros for the ship, which is a medium-heavy “multi-tasking frigates” that Italy is adopting with 3 versions starting from 4,500+ tons to assign the heavy Fremm frigates and replace the outdated Egyptian frigates , or the Egyptian demand may be for a light version (Corvette) at a displacement of 1000 - 2000 tons for coastal defense and protection tasks. This brings the value of marine contracts alone to 10 billion euros
As for the Italian bank, “Banca Akros”, it believes in its report, during which it expected positive news within two weeks, that Leonardo could have a share of 45% of the contract, being the main provider of electronic and fire and weapons management systems,
With regard to the aviation contracts, the bank believes that the value of the contracts of the "Eurofighter Typhoon" fighters and the light combat aircraft and advanced training "Airmachi M-346" can be valued together between 6 to 8 billion euros, in the event that they are in the most expensive equipment (including the cost of adjustments) And armament, after-sales services, spare parts, training, infrastructure, etc., so the total value of the contracts will reach 16-18 billion euros, and Leonardo's share will not be less than 10.5 - 12.5 billion euros, which will represent a third of the total contracts won by the company during 2019 Which amounted to 37 billion euros.
* Analysis Italian companies are striving for the success of the Egyptian deal, with the opportunities it holds for employment and maintaining employment for several years, and supporting and strengthening the industrial sector, and by extension contributing to stimulating and reviving the faltering Italian economy - like other countries - as a result of the Corona epidemic.
The Italian government, led by Prime Minister Giuseppe Conte, is in a delicate and critical position, as it faces great pressure from arms companies with its great influence supported by the Prime Minister’s adviser (recently held the position of Deputy Director of Italian Intelligence) and the Italian Chief of Staff, and between the pressure of the opposition due to the crisis of the death of Regini, Rome's strategic interests with Cairo centered on many issues, on top of which are energy, security in the Eastern Mediterranean and Libya (the Italian company, Technimont, signed last May a contract with the Egyptian Hydrocarbon Company to establish a ammonia factory in Sokhna with a value of $ 550 million - the Italian company Danieli - along with other companies - In the establishment of the Suez Steel Complex "Egypt Steel" which was opened last November).
Certainly, the massive Egyptian pressure on the French cannot be ignored, as Paris is the first and fierce competitor to Rome, as this is evident through its relentless efforts to curtail the deal in its favor. Indicators and forecasts tend to near the formal announcement of the completion of the Italian FREMM deal, as well as granting Fincantieri and Leonardo companies to move forward in negotiations for subsequent contracts.
This huge volume of contracts opens the way for the perception of the shape of the Egyptian navy within 10 years from now (the size of deals and the number of ships confirms that it is a long-term integrated armament plan from 2020 to 2030) ..As it could become the strongest in the eastern Mediterranean and Middle East, displacing Turkish navy from first to second place.
If analysts' guesses about contracting 20 naval vessels that they are coastal mission ships and not just missile launchers - or even a mixture of both - it validates the concept of transferring to global marine classifications with huge offensive capabilities (blue water navies in their true sense).
All figures mentioned are purely the expectations and estimates of analysts and the bank, and the value of the contracts will not be known until after they are signed. Whatever that value, the banks will be a major financier with all possible financial facilities for Egypt with credit ratings and positive future outlooks for the economy and demonstrated by the success of the economic program and the sustainable ability to pay off external debt without problems. Certainly, the value of the deal is to be paid over several years, as are any military deals with different countries of the world.
Financial facilities per se are related to the strength and depth of strategic relations, the size and importance of common interests and files between the two countries, and economic indicators of the country wishing to finance armament contracts or national projects with it (France is the closest example of this in the financing of previous armament contracts and Egyptian national projects as the metro)..
https://www.milanofinanza.it/news/a...ARS7KDJNbO0sv7mbQgixcsehw2WZASlWZa1re-qGhqHtU
The writer of this Analysis is Muhammad al-Kinani
A well known and trusted analysts of the the Middle East affairs..
Thanks to the news spreading about the expected Egyptian deal, the shares of Fincantieri and Leonardo, Italy, are rising after a massive downturn in the negative economic consequences of the Corona epidemic.
In addition to the Bergamini class FREMM frigates contract, which is estimated at 1.2 billion euros with Fincantieri, analysts estimate that this figure could reach 3.5 billion euros if the subsequent contract is completed by 4 additional frigates of the same type with a total of 6 frigates.
And in the event that the contract for 20 coastal missile launches / ships on the coastal mission (including the transfer of technology for the Alexandria arsenal) is completed, analysts estimate the value of the contract at 6.5 billion euros, on the assumption that these pieces will not be missile launches - as previously thought - rather they will be of the The new category “PPA”, or what is known as the “multi-purpose coastal mission ship Pattugliatore Polivalente d'Altura” with a value of 300 million euros for the ship, which is a medium-heavy “multi-tasking frigates” that Italy is adopting with 3 versions starting from 4,500+ tons to assign the heavy Fremm frigates and replace the outdated Egyptian frigates , or the Egyptian demand may be for a light version (Corvette) at a displacement of 1000 - 2000 tons for coastal defense and protection tasks. This brings the value of marine contracts alone to 10 billion euros
As for the Italian bank, “Banca Akros”, it believes in its report, during which it expected positive news within two weeks, that Leonardo could have a share of 45% of the contract, being the main provider of electronic and fire and weapons management systems,
With regard to the aviation contracts, the bank believes that the value of the contracts of the "Eurofighter Typhoon" fighters and the light combat aircraft and advanced training "Airmachi M-346" can be valued together between 6 to 8 billion euros, in the event that they are in the most expensive equipment (including the cost of adjustments) And armament, after-sales services, spare parts, training, infrastructure, etc., so the total value of the contracts will reach 16-18 billion euros, and Leonardo's share will not be less than 10.5 - 12.5 billion euros, which will represent a third of the total contracts won by the company during 2019 Which amounted to 37 billion euros.
* Analysis Italian companies are striving for the success of the Egyptian deal, with the opportunities it holds for employment and maintaining employment for several years, and supporting and strengthening the industrial sector, and by extension contributing to stimulating and reviving the faltering Italian economy - like other countries - as a result of the Corona epidemic.
The Italian government, led by Prime Minister Giuseppe Conte, is in a delicate and critical position, as it faces great pressure from arms companies with its great influence supported by the Prime Minister’s adviser (recently held the position of Deputy Director of Italian Intelligence) and the Italian Chief of Staff, and between the pressure of the opposition due to the crisis of the death of Regini, Rome's strategic interests with Cairo centered on many issues, on top of which are energy, security in the Eastern Mediterranean and Libya (the Italian company, Technimont, signed last May a contract with the Egyptian Hydrocarbon Company to establish a ammonia factory in Sokhna with a value of $ 550 million - the Italian company Danieli - along with other companies - In the establishment of the Suez Steel Complex "Egypt Steel" which was opened last November).
Certainly, the massive Egyptian pressure on the French cannot be ignored, as Paris is the first and fierce competitor to Rome, as this is evident through its relentless efforts to curtail the deal in its favor. Indicators and forecasts tend to near the formal announcement of the completion of the Italian FREMM deal, as well as granting Fincantieri and Leonardo companies to move forward in negotiations for subsequent contracts.
This huge volume of contracts opens the way for the perception of the shape of the Egyptian navy within 10 years from now (the size of deals and the number of ships confirms that it is a long-term integrated armament plan from 2020 to 2030) ..As it could become the strongest in the eastern Mediterranean and Middle East, displacing Turkish navy from first to second place.
If analysts' guesses about contracting 20 naval vessels that they are coastal mission ships and not just missile launchers - or even a mixture of both - it validates the concept of transferring to global marine classifications with huge offensive capabilities (blue water navies in their true sense).
All figures mentioned are purely the expectations and estimates of analysts and the bank, and the value of the contracts will not be known until after they are signed. Whatever that value, the banks will be a major financier with all possible financial facilities for Egypt with credit ratings and positive future outlooks for the economy and demonstrated by the success of the economic program and the sustainable ability to pay off external debt without problems. Certainly, the value of the deal is to be paid over several years, as are any military deals with different countries of the world.
Financial facilities per se are related to the strength and depth of strategic relations, the size and importance of common interests and files between the two countries, and economic indicators of the country wishing to finance armament contracts or national projects with it (France is the closest example of this in the financing of previous armament contracts and Egyptian national projects as the metro)..
https://www.milanofinanza.it/news/a...ARS7KDJNbO0sv7mbQgixcsehw2WZASlWZa1re-qGhqHtU
The writer of this Analysis is Muhammad al-Kinani
A well known and trusted analysts of the the Middle East affairs..
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