BAE Systems is on track to conclude its $5.5 billion acquisition of Ball Aerospace in the coming days after receiving regulatory approvals for the deal, the companies announced on Monday.
Tom Arseneault, President and CEO of BAE Systems Inc., stated in an interview that all necessary approvals have been secured from regulators, with only standard closing procedures remaining to be completed.
The Department of Justice, after issuing a second request for information in November, granted early termination of the second request, indicating no antitrust concerns following its examination of the portfolios of both companies.
With a “standard approval” from the Committee on Foreign Investment in the United States already obtained, BAE Systems, headquartered in the United Kingdom, is poised to integrate Ball Aerospace into its operations as the fourth operating sector, named Space & Mission Systems.
Upon completion, Ball Aerospace's 5,200 employees and its Colorado manufacturing facility will join the new sector, maintaining its ongoing work in civil and national security space programs.
Dave Kaufman, current president of Ball Aerospace and future head of the Space & Mission Systems unit, emphasized the potential for growth and collaboration with BAE Systems, particularly in pursuing larger programs and leveraging BAE's expertise in electronics and subsystems.
Arseneault underscored the combined company's enhanced buying power, which will enable the Space & Mission Systems sector to benefit from global supply agreements, reducing material costs and generating synergies.
Kaufman highlighted the expanded opportunities for Ball Aerospace employees, including potential for career advancement and engagement with new customers, both domestically and internationally.
Despite uncertainties surrounding the final fiscal year 2024 budgets from the federal government, their primary customer, both companies expressed confidence in managing potential impacts as industry-wide concerns persist.
Arseneault acknowledged the industry's collective vigilance and the importance of resolving budgetary issues in the near term to mitigate potential disruptions, sentiments echoed by Kaufman, who emphasized the need for a timely resolution.