BAE Systems has been given the regulatory green light for its blockbuster £4.4bn acquisition of Ball Aerospace.
In a statement on the London Stock Exchange, the weapons giant said it would be executing steps finalise the acquisition in the coming days. Shares were trading up 1.44 per cent following the announcement.
Colorado-based Ball provides spacecrafts, mission payloads and antenna systems to the US Department of Defense and Intelligence Community. It employs 5,200 employees across its operations.
The FTSE 100 giant had fought off a number of private equity and defence group’s to snap up Ball from its parent company Ball Corporation.
Chief executive Charles Woodburn said: “In recent years, we’ve said that we would seek out opportunities to grow our portfolio in advanced technology areas that meet our customers’ most urgent needs, and completing the acquisition of Ball Aerospace is an example of that strategy in action.”
“We look forward to welcoming the employees of Ball Aerospace to BAE Systems, bringing one of industry’s most respected and capable businesses into the Group.
“The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain and further enhances our value compounding model of top line growth, margin expansion and high cash generation.”
BAE will fund the deal with existing cash and new external debt, with the new business called Space and Mission Systems.
The company’s share price has been rocketing in the last 12-months, up more than 42 per cent, as global tensions mount across the world.
The war in Ukraine, and more recent conflicts in Gaza and the Red Sea, has fueled a surge in orders for military equipment and defence training and systems.