Rockwell International Corp &lt;ROK.N> has signed an agreement leading to the takeover of Valeo &lt;VLOF.PA> subsidiary &lt;SO.M.A. Europe Transmissions> Valeo said in a statement. The company said Rockwell had agreed to handle Soma sales around the world and to help Valeo in restructuring its loss-making subsidiary. It also said Rockwell an American high-technology engineering group with interests in aerospace and the car industry would take control of Soma at the beginning of 1988 if it obtained approval from the French government. Soma a fully owned subsidiary of Valeo makes axles and gear boxes for heavy vehicles and machinery mostly used in the construction business. A Valeo spokesman said &lt;S.E.S.M.> a subsidiary of Soma specialized in equipment for military vehicles had been excluded from the agreement with Rockwell. He said no details were available on the eventual amount Rockwell would pay for Soma. Vehicle components maker Valeo was the object of a takeover bid in 1986 by Italian group &lt;Compagnie Industriali Riunite> (CIR) controlled by Olivetti chairman Carlo de Benedetti. The French government limited CIRs holding in Valeo to less than 30 pct in June 1986 after classifying Valeo as a defence contractor. Today CIR has effective control of Valeo through its French holding company &lt;Compagnies Europeenes Reunies> Cerus which has a 18.24 pct stake in Valeo. Since CIR won control of the French group in June Valeo has pursued a policy of concentrating its activities on the car industry. The company spokesman said Valeo had sold off all its construction interests in 1986 but declined to comment on the amount of the sales. The spokesman said figures were not available on Somas losses in 1986 but said the company had registered a turnover of 546 mln francs. Valeo recorded a consolidated net loss of 388 mln francs in 1986 on a turnover of 12.1 billion francs.
ROCKWELL SIGNS AGREEMENT ON VALEO SUBSIDIARY