Safran and MTU reach agreement on co-operation on military jet engine: sources

PARIS (Reuters) - French engine maker Safran <SAF.PA> and German counterpart MTU Aero Engines <MTXGn.DE> have reached an agreement to cooperate on a military jet engine, removing an obstacle to developing a Franco-German fighter, sources familiar with the matter said.

The agreement, which follows a letter of intention signed in February, calls for Safran to be the prime contractor with MTU as "main partner" they said. A deal had been held up amid reports of opposition in the German parliament.

The agreement covers the current research phase and calls for a joint venture to be set up in the second half of 2021 to handle future proposed work.

(Reporting by Tim Hepher; editing by Louise Heavens)

12/03/2019 9:33

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