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Formation[ edit ] The merger of American corporations Boeing and McDonnell Douglaswhich followed the forming of Lockheed Martinthe world's largest defence contractor inincreased the pressure on European defence companies to consolidate.
These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries.
In the government, on advice from the Office of Fair Tradingannounced it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances". This unique share prevents amendments of certain parts of the company's Articles of Association without the permission of the Secretary of State.
BAE Systems retains this but the registered officeand base for the senior leadership team, is in the City of Westminster.
It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described as an "important year" for its European joint ventures, which were reorganised considerably. The company has described the rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined.
Importantly, US investment in research and development is significantly higher than in Western Europe. This shift in strategy was described as "remarkable" by the Financial Times. In November BAE sold its MBDA thus became the world's second largest missile manufacturer.
It was understood that General Dynamics wished to acquire the submarine building facilities at Barrow-in-Furnesswhile VT Group was said to be interested in the remaining yards on the Clyde.
The sale was complicated by the requirement of the German government to approve any sale. The F JSF programme became the focus of this effort, with British government ministers such as Lord DraysonMinister for Defence Procurementsuggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain Fs independently.
On 12 DecemberLord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of the aircraft.
BAE Systems' main interest in the partnership was to learn about the high speed build and operations processes of McLaren. The latter provides counter fraud and anti-money laundering solutions to the global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring.
These facilities manufactured wings for the Airbus family of aircraft. Six days after this process began, Airbus announced delays to the A with significant effects on the value of Airbus shares.
On 4 October shareholders voted in favour and the sale was completed on 13 October. In it reduced this share to The Times stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft". Despite "considerable expressions of interest", the sale was abandoned in January A new generation of nuclear missile submarines, the Dreadnought-classwas ordered in The company retained the support and engineering activities of the business as part of the transaction.
BAE said that the changes are to "make a more efficient and effective business". Major naval projects include the Astute-class nuclear submarine, Type 26 frigate and Queen Elizabeth-class aircraft carrier.Riaz Haq writes this data-driven blog to provide information, express his opinions and make comments on many topics.
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