Millions of dollars from a historically unprecedented surge in defense spending; is driving a significant number of business moves The aim is to keep a large piece of the pie. In this “war”, not even formed … Being part of the same consortium guarantees that you will not be subjected to harsh attacks from your partners.
The case of Tess Defense, founded by Indra, Escribano, General Dynamics (formerly Santa Bárbara) and Sapa Placencia, responsible for the production of the new Dragon 8×8 armored vehicle, is typical. The first two companies, each led by two brothers, Ángel and Javier, are in serious negotiations to create the country’s leading group in the defense industry. The capital gains expected by the protagonists from this operation are between 10 million euros and 1.5 billion euros.
However, some Indra shareholders oppose the company’s acquisition of Escribano. In this regard, Sapa, which holds an 8% stake in Indra, maintains this position, considering it a clear conflict of interest. Indra will be the big beneficiary of the operation, as the brothers own 14.3% of the company Indra is acquiring, according to all analysts. In other words; the responsible parties of the two companies involved will ultimately be held responsible.
The trade war within Tess Defense also occurred in 8×8. Mr. Indra and Mr. Escribano blamed General Dynamics for the delayed delivery of armored vehicles and sent messages through the media. Indra had contracts with directors and former directors of competitors, and appears to have wanted to make an acquisition.
This situation means that Tess Defense is not a united or cohesive consortium, and therefore it is a chimera that they are jointly trying to solve the problems of the 8×8 program by looking for the culprit rather than how to solve the problem.
About The Author
