British defense company BAE Systems said it had agreed to buy key electronic systems from U.S. peers Raytheon and United Technologies whose planned merger has necessitated asset sales.
In a Monday, January 20 statement, BAE said it would pay $1.925 billion (€1.734 billion) in cash for the military global positioning system (GPS) belonging to United subsidiary Collins Aerospace.
The British group is to acquire also Raytheon’s airborne tactical radios business for a cash sum of $275 million.
“These assets have come to market as part of the regulatory process relating to the merger,” the statement said.
BAE chief executive Charles Woodburn said the “proposed acquisitions, which are focused on areas of highest priority defense spending, will further enhance the group’s opportunity for continued growth in electronic systems.”
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With reporting from AFP
