Tuesday, March 08, 2005

What's up with this?

British contractor acquires U.S. asset.
BAE Systems Plc, Europe's largest defense contractor, agreed to buy United Defense Industries Inc. for $3.97 billion to tap growing demand for artillery and armor, including the Bradley Fighting Vehicle used by the U.S. in Iraq. BAE will pay $75 a share in cash for Arlington, VA− based United Defense, Chief Financial Officer George Rose said on Monday, March 7. London−based BAE will become the Pentagon's sixth−largest contractor with the purchase, which will be the biggest defense−industry acquisition in more than four years and the biggest ever by a foreign company in the U.S. BAE bought five U.S. defense companies last year. Spending on tanks and armored vehicles is growing in the U.S. and Europe because of conflicts such as those in Iraq and Afghanistan. The defense budget last year in the U.S., the world's largest weapons market, was $375 billion, about three times that of the U.K., France, Germany and Italy combined. “The acquisition fits the strategy BAE laid out to develop in the U.S. with the Department of Defense," said Zafar Khan, an analyst at Societe Generale.
Source: http://www.bloomberg.com/


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