BAE today announced that it has bought Ball’s aerospace business in a $5.6 billion deal.
BAE Systems’ deal for US industrials firm Ball’s aerospace arm is a reminder there is more to the business than just being a maker of armaments.
BAE is looking to expand in nascent sectors like space as well as build on its capabilities in electronics and this deal looks a decent fit in both areas.
AJ Bell’s Russ Mould said: “The only downside is the $5.6 billion price tag which looks a touch on the expensive side and potentially explains the initial lukewarm reaction from shareholders to the deal. The cost will raise the pressure on the company to execute smartly on the integration process. Assuming it hits the targets it has outlined then it should be earnings accretive in the short term.
“The fact BAE has been able to carry out a transaction like this with a minimum of fuss is in itself testament to its improved fortunes.”
Leave a Comment