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BAE Systems PLC on Wednesday said it has received all the regulatory approvals needed to complete the acquisition of Ball Aerospace from Ball Corp. The deal was first announced back in August. BAE said the acquisition will close with a purchase price of $5.5 billion. It will be treated as an asset purchase for US tax purposes, so the price is split between about $750 million in net present value tax benefit and underlying economic consideration of $4.8 billion. Ball Aerospace is based in the US state of Colorado and has more than 5,200 employees. It provides spacecraft, mission payloads, and optical and antenna systems for the US Department of Defense, intelligence agencies, aerospace and defence prime contractors, and civilian space agencies. BAE said Ball Aerospace will be renamed Space & Mission Systems and will be included in its Electronic Systems reporting segment. BAE will provide 2024 group guidance that includes the new acquisition with its 2023 results on Wednesday next week. ‘The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain and further enhances our value compounding model of top line growth, margin expansion and high cash generation,’ BAE Chief Executive Charles Woodburn commented. BAE shares were up 1.4% at 1,229.50 pence in London midday Wednesday. Ball Corp shares closed down 1.2% at $59.82 in New York on Tuesday. Copyright 2024 Alliance News Ltd. All Rights Reserved.
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