PARIS : France’s long-standing policy of maintaining Strategic Autonomy in Military Aviation has come under renewed examination after the French government approved the sale of LMB Aerospace, a Key Supplier to the Rafale Fighter Jet, to the U.S.-Based Loar Group. The transaction, finalized in December 2025 for €367 million (US$433 million), transfers ownership of a Sensitive Defense Supplier to an American firm and has triggered extensive Political Debate over the future Export Independence of French military platforms.
The approval was granted by the Ministry of the Economy despite reservations reportedly raised by the Directorate General of Armaments (DGA) and strong opposition from multiple political parties in the French National Assembly.
LMB Aerospace And Its Role In French Defense Programs
Founded more than 60 years ago and headquartered in Malemort-sur-Corrèze, LMB Aerospace is a specialized manufacturer of High-Performance Fans and Brushless Electric Motors used in demanding Military and Aerospace applications. Although classified as a Small and Medium Enterprise (SME), the company occupies a Central Position within France’s Defense Supply Chain.
LMB supplies Cooling Fans for the Dassault Rafale fighter aircraft. Its products are also integrated into systems produced by Naval Group, including Nuclear-Powered Ballistic Missile Submarines (SSBNs) and the aircraft carrier Charles de Gaulle. In addition, LMB equipment is used on Airbus Tiger attack helicopters, the Leclerc main battle tank, and the VBCI armored vehicle.
The company also supplies components for U.S.-Manufactured Platforms such as the F-15, F-16, and F/A-18 fighter jets, as well as Apache and Black Hawk helicopters, reflecting its integration into both European and American Defense Supply Chains.
Acquisition By Loar Group
The acquiring firm, Loar Group, is headquartered in New York State and operates as a subcontractor within the U.S. Aerospace and Defense Sector. Loar produces Mechanical and Electromechanical Components for civil and military aviation and supplies major contractors including Boeing, Lockheed Martin, Northrop Grumman, and Kratos Aerospace.
Loar announced the completion of its acquisition of LMB Fans & Motors in December 2025, following regulatory review under France’s Foreign Investment Control Framework.
ITAR Considerations And Export Implications
France has traditionally promoted the Rafale Fighter as being free from U.S. Export Control Constraints, a characteristic often referred to as “ITAR-Free” Status. This refers to independence from the International Traffic in Arms Regulations (ITAR), which govern defense items listed on the United States Munitions List (USML) and require U.S. Government Approval for export or re-export.
French officials and defense manufacturers have highlighted this autonomy as a Key Differentiator when marketing the Rafale internationally, particularly to countries seeking to avoid Political Conditions or Third-Party Approval Risks associated with U.S.-Origin Defense Equipment.
Opponents of the LMB transaction argue that American Ownership could, over time, place LMB’s technologies under U.S. Jurisdiction. If future versions of LMB’s fans or motors were classified as U.S.-Controlled Items, they could become subject to ITAR, potentially affecting Rafale Exports and Future Upgrades.
Parliamentary Opposition And Political Response
The sale prompted Rare Cross-Party Opposition in the French National Assembly. Lawmakers from both Left- and Right-Wing Parties criticized the transfer of ownership as incompatible with France’s stated commitment to Defense Sovereignty.
Marine Le Pen, leader of the National Rally, stated that the deal risked placing French Defense Exports under External Influence. Jordan Bardella described the transaction as the sale of a Strategic National Asset.
From the left, Socialist Senator Hélène Conway-Mouret questioned the consistency of government policy on Sovereignty and European Industrial Autonomy. The French Communist Party warned that U.S. Ownership would expose LMB to American Extraterritorial Legislation, including ITAR Provisions.
Government Conditions And Safeguards
The French government has defended its decision by citing Safeguards attached to the approval. Economy Minister Roland Lescure stated that the state will retain a Golden Share in LMB Aerospace, granting Veto Power over Strategic Decisions affecting National Security.
Additional conditions include the Mandatory Maintenance of Production Facilities in Corrèze and the obligation to Fulfill All Contracts with French Military Customers without time limits. According to the government, these measures are intended to ensure Continuity of Supply for Sensitive Defense Programs and preserve Critical Industrial Capabilities within France.
International Relevance
The transaction has implications beyond France. Several Rafale Operators and Prospective Buyers have cited freedom from U.S. Export Controls as a factor in their Procurement Decisions. Any change in the Regulatory Status of key components could affect perceptions of the aircraft’s Export Independence in markets where Strategic Autonomy is a priority.
The sale of LMB Aerospace to an American Firm therefore represents a significant development within the French Defense Industrial Landscape, raising questions about the balance between Foreign Investment, Industrial Control, and long-standing Policy Objectives related to Military Export Autonomy.
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