BREAKING: UK defence giant BAE Systems buys Ball Corp’s aerospace for £4.4 bn17th Aug 2023
Britain’s largest defence company, BAE Systems, is acquiring the aerospace division of the American company Ball Corporation – Ball Aerospace. While Ball is best known as the world’s largest producer of beer cans, the Aerospace division is a significant manufacturer of components for US reconnaissance systems. In space, satellites including Earth Observation platforms use its bodies, components and sensors.
This deal is the biggest ever for BAE, a company that wanted to expand into the space industry where it’s not as big as its competitors. This move comes after the conflict in Ukraine led to more defence spending and increased the importance of space as a priority.
The approximate value of the deal is estimated at £4.4 billion ($5.5 billion), Reuters reports.
The acquisition of Ball Corporation will increase the revenue of British BAE Systems and allow it to further solidify its position in the American market. BAE plans to raise new debt and use cash to buy Ball’s aerospace operations.
Where does Ball Aerospace fit in BAE?
Currently, the British giant is the third-largest producer of military products in the world. In the US, the company holds a significant share of the US defence market. BAE Systems has divisions in armoured vehicle production, aviation, ammunition, surface and underwater ships, artillery systems, and technical support divisions.
In the American market, BAE has a subsidiary – BAE Systems Inc. The American company is independent of the British one under US law and completely prohibits disclosing information about products within the framework of US national security. In addition to the US, BAE Systems plc has subsidiaries in Sweden, Australia, Japan, France, Germany, Italy, Spain, and others.
It was previously announced that BAE Systems to open an office in Ukraine and establish production and repair capabilities for weaponry. This was agreed upon during a meeting between the President of Ukraine, Volodymyr Zelensky, and representatives of the parent British defence company.