Airbus Ends Acquisition Bid of ATOS' Big Data and Security Business

Airbus has decided to halt discussions with Atos regarding the potential acquisition of its Big Data and Security (BDS) business line, dealing a blow to Atos's efforts to overcome financial hurdles.

The termination of negotiations, which could have amounted to a €1.8 billion deal, caused Atos shares to plummet by 25 percent and trading to be suspended temporarily.

In response, Atos confirmed the end of talks with Airbus and announced a reassessment of strategic options, considering French state interests. With its shares dropping over 90 percent in three years, Atos has struggled financially, with its BDS division managing critical cybersecurity contracts, including those for the French military and the Paris Olympics.

Airbus cited complexities in integrating the BDS unit and Atos's financial distress as reasons for withdrawing from negotiations. Talks began in January as Atos sought to reduce debt, following the collapse of another deal in February.

Now, Atos faces heightened negotiations with creditors, overseen by a mediator, to avoid bankruptcy. Despite setbacks, potential investor Daniel Křetínský remains interested, while Atos's lead shareholder aims to take control and raise capital.

The saga underscores Atos's challenges, with previous restructuring attempts stalled. From a market capitalization of €9.84 billion, it has fallen to just €191.59 million.