BAE Systems to buy US rival
Defence giant BAE Systems unveiled a $3.97bn (£2.09bn/€3bn) deal today to buy US rival United Defense Industries.
The move will help BAE capitalise on the increase in spending by the Pentagon as it combats the growing threat of terrorism and maintains operations in Iraq and Afghanistan.
United Defense, which employs around 8,000 staff at 25 sites in the United States and Sweden, generated sales of $2.29bn (£1.19bn/€1.7bn) last year.
It designs and develops combat vehicles, artillery systems, naval guns, missile launchers and precision munitions used by the Pentagon and its allies.
In addition, the group repairs and converts ships for the US Navy and other US government agencies.
BAE is the UK’s largest defence and aerospace group, owning a stake in aircraft giant Airbus and taking part in the production of the Eurofighter Typhoon,
It pledged to finance the deal through existing resources, a new $3bn (£1.56bn/€2.3bn) debt facility and by placing shares worth around £375m (€544m).
