ISLAMABAD: The acquisition of LMB Fans & Motors by U.S.-based Loar HoldingsInc. in December 2025 has raised concerns over the strategic autonomy ofFrench military platforms, including the Dassault Rafale fighter jetsupplied to India. LMB, a Corrèze-based specialist in high-performance fansand brushless motors, provides cooling components essential for theRafale’s operation. The €367 million deal, approved by the Frenchgovernment under strict conditions despite political opposition, couldpotentially subject these parts to U.S. export controls such as ITAR,complicating supplies for non-U.S. aligned users. India, operating Rafalejets in its Air Force and with naval variants on order, has historicallyfavored the aircraft for its claimed independence from Americanrestrictions, a key factor in past procurement decisions amid geopoliticalsensitivities.
The recent acquisition of a critical French aerospace supplier by anAmerican company has delivered a strategic setback to India, potentiallyplacing its fleet of Dassault Rafale fighter jets under renewed dependenceon U.S. regulatory oversight for essential components. Loar Holdings Inc.,a New York-based niche aerospace and defense parts manufacturer, completedthe purchase of LMB Fans & Motors for €367 million in late December 2025,following clearance from France’s Ministry of Economy and Finance. LMB,headquartered in Malemort-sur-Corrèze, specializes in customizedhigh-performance fans and brushless motors used in demanding militaryenvironments. This transaction has ignited debates in France and amongRafale operators about the erosion of the platform’s long-advertised”ITAR-free” status, which has been a major selling point for exports tocountries seeking alternatives to U.S.-influenced equipment.
LMB’s products play a vital role in thermal management for various Frenchdefense systems. The company supplies specialized fans for the Rafalefighter jet, ensuring reliable cooling for avionics and other systemsduring high-intensity operations. Similar components are integrated intoFrench nuclear submarines, Airbus Tiger helicopters, the Leclerc mainbattle tank, and naval vessels including the Charles de Gaulle aircraftcarrier. Founded over 60 years ago, LMB generates nearly all its revenuefrom proprietary designs, offering more than 2,000 unique products tailoredfor aerospace and defense applications. With a workforce exceeding 75employees primarily in France, the firm has established itself as a keysubcontractor in Europe’s strategic defense ecosystem.
The deal’s completion followed an earlier put agreement announced inFebruary 2025, valuing the acquisition at around €365-367 million plusassumed debt. Loar expects LMB to contribute approximately $60 million inannual revenue and $30 million in adjusted EBITDA by the end of 2026. TheU.S. firm, listed on the NYSE, focuses on diversified aerospace componentsessential for modern aircraft and defense systems. Loar’s portfolio alreadyserves major platforms, including those from Boeing, Lockheed Martin, andothers, positioning the acquisition as a strategic expansion into Europeanniche technologies.
In France, the sale faced significant resistance. Opposition parties in theNational Assembly voiced strong objections, warning that American ownershipcould compromise national strategic autonomy. Critics argued that futurecomponent updates or exports might fall under U.S. International Traffic inArms Regulations (ITAR), which impose strict controls on defense articles.The French government defended the approval, citing “extremely strict”conditions, including continued operations in France, compliance withmilitary contracts, and retention of state oversight mechanisms such as apotential golden share or veto rights over critical decisions. TheDirectorate General of Armaments initially recommended caution, but theMinistry proceeded after foreign investment screening.
For India, the implications are particularly acute given its reliance onRafale jets. New Delhi inducted 36 Rafale aircraft for the Indian Air Forcestarting in 2020, and a separate deal for 26 Rafale Marine variants for theNavy was signed in 2025 to enhance carrier-based operations. The Rafale’sappeal to India stemmed partly from France’s promise of operationalindependence, avoiding the vulnerabilities associated with U.S. sanctionshistory on countries diverging from American foreign policy. Past instancesof U.S. embargoes have influenced India’s diversification strategy,favoring suppliers like France and Russia for key assets.
Analysts note that while LMB’s components are not core combat systems likeavionics or weapons, their role in sustainment and upgrades could introducesupply chain risks. If LMB products become subject to ITAR due to U.S.ownership, India might face delays or restrictions in obtaining spares,especially during heightened regional tensions. This contrasts with theRafale’s marketed advantage over American fighters like the F-16 or F/A-18,where export controls have occasionally complicated alliances. Someassessments suggest the risk is mitigated by France’s safeguards, but theperception of reduced autonomy could affect future Rafale negotiations oroperator confidence.
Broader defense circles view the acquisition as part of increasingU.S.-European consolidation in aerospace supply chains. Loar’s integrationof LMB enhances its global footprint while aligning with trends ofcross-border mergers in niche technologies. However, it underscoreschallenges for France in preserving sovereign capabilities amid economicpressures on small-to-medium enterprises. The deal highlights tensionsbetween commercial opportunities and strategic imperatives in an era ofgeopolitical uncertainty.
The development may prompt India to accelerate indigenization efforts forfighter jet components, aligning with self-reliance goals under Make inIndia. While no immediate disruptions are reported, the long-term effectson maintenance, upgrades, and potential additional Rafale procurementsremain under scrutiny. As Rafale operators monitor the situation, thetransaction serves as a reminder of how ownership shifts in the defenseindustrial base can influence international military capabilities.
Source:https://www.eurasiantimes.com/crown-jewel-of-france-u-s-firm-buys-rafale-jets-key-supplier-will-they-be-subject-to-american-export-restrictions
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