A tie-up between French defence electronics firm Thales and Sagem Defense Securite, the defense and security unit of France's Safran, "would make sense", Thales chairman Denis Ranque said Monday in Spain.
"It would make sense, it is involved in the same sectors, but as far as I know it is not for sale," he told reporters in Madrid when asked if his firm would be interested in this unit of aerospace and electronics group Safran
Ranque would not comment on press reports of a possible merger between Thales and Safran.
Earlier Monday French daily La Tribune that Thales and Safran were preparing to restart merger plans.
"Thales is now focused on three areas (defence, aerospace and security systems) and has divested other businesses," said Ranque, adding the firm was "looking at various possibilities to reinforce any of these three branches."
A merger between Thales and Safran would create the world's second largest aerospace equipment supplier after General Electric with sales of 24 billion euros (34 billion US dollars), according to French media.
But Sagen has several units which are involved in areas such as the manufacture of airplane motors which do not neatly match Thales' activities.
Ranque, in Spain for an event to mark the firm's 40 years in the country, said his firm could grow organically.
"We still have money," he added.
Safran was created from a coupling of French state aero engine maker Snecma with telecoms equipment maker Sagem in 2004 while Thales arose out of privatized state defence electronics firm Thomson-CSF.
