BAE, EADS merger might create US intel acquisition opportunity
- By Defense Systems Staff
- Sep 14, 2012
For BAE Systems and EADS to complete their merger, they’ll have to jump through several regulatory hoops, one of which might create a key opportunity for U.S. companies, writes Nick Wakeman in a Washington Technology blog. Washington Technology is a sister website of Defense Systems.
The opportunity would stem from the possibility that U.S. regulators might require the newly created European defense giant to divest its intel business to satisfy U.S. regulators, the blog said. This might occur in the context of the growing discomfort with foreign-ownership of contractors that support intelligence agencies and operations.
If it comes to pass, the range of potential buyers might include some of the large U.S. prime contractors, which would look at this as an opportunity to remove a competitor from a crowded field, and also private equity buyers.