The planned merger of British Aerospace and GEC's Marconi Electronic Systems (MES) division has cleared the last US regulatory hurdle. The US defence and justice departments have signed off on the proposed deal on the condition that BAe erect so-called "firewalls" preventing the flow of competitive and sensitive information on two transatlantic collaborative weapons programmes that remain in competition.
The Department of Defense says "an interim agreement reached among the parties is designed to ensure competition and innovation" in the Tracer armoured reconnaissance vehicle and Joint Strike Fighter projects.
Ratings specialist Standard & Poor's responded to US approval of the merger by raising BAe's long- and short-term credit ratings, reflecting its "very strong position in the increasingly competitive European defence industry, its exposure to the competitive commercial aerospace sector through its 20% stake in Airbus Industrie, and its solid financial profile".
The BAe-MES merger becomes effective this week, when the enlarged company begins trading. The business was expected to be re-named BAE Systems (with some sources suggesting Baesystems) - the new name being intended to reflect the broadening of its base beyond aerospace activities, and the dropping of British indicating its international nature.
Source: Flight International
