BAE Systems And Rheinmetall Launch Combat Vehicle Joint Venture.
(Alliance News) - Defence firms BAE Systems PLC and Rheinmetall AG launched their combat vehicles joint venture on Monday after securing UK regulatory approval in mid-June.
In January, BAE agreed to sell a 55% stake in its Global Combat Systems Ltd business - which builds armoured vehicles, artillery and more - to German peer Rheinmetall for GBP28.6 million.
In mid April, however, the UK Competition & Markets Authority announced it would scrutinise the deal with an eye to whether it would results in a "substantial lessening of competition" in the UK. Nonetheless, in mid June the CMA ended its competition probe into the deal.
On Monday, FTSE 100-listed BAE and Rheinmetall issued a joint statement announcing that Rheinmetall BAE Systems Land (RBSL) had been launched. RBSL intends to pay a "major" role in the manufacturer of the Boxer 8x8 combat vehicle programme for the British Army.
RBSL Managing Director Peter Hardisty - formerly of Rheinmetall UK - said: "RBSL is a new business drawing on the significant strengths and expertise of both BAE Systems Land UK and Rheinmetall. Our employees in Telford, Bristol, and Washington (UK) have a valuable skill set and extensive experience in combat vehicle engineering. With new orders, we shall be able to sustain these capabilities and expand over the coming years, seeking new opportunities in the UK and overseas."
UK Secretary of Defence Penny Mordaunt added: "This announcement is a clear vote of confidence in the UK's defence industry as a world-leader in designing, supplying and supporting military vehicles."
Shares in BAE were 0.4% lower at 493.60 pence in London on Monday.
By Ahren Lester; firstname.lastname@example.org
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|Date:||Jul 1, 2019|
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