Alcatel is set to buy Thales’ 48.8 per cent share in its Alcatel Space joint venture. Under the terms of the deal, which is subject to European Commission approval, it will pay $703 million (E795 million) for the stake, paid half in cash and half in Thales stock. Alcatel remains a significant investor in Thales (formerly known as Thomson-CSF), and even after this payment will still hold some 20 per cent of Thales. According to Thales, the move will allow it to refocus on its three core businesses, namely aerospace, defence and information technology.