“The addition of this quality, fast-growing technology-focused business will significantly expand our presence in this increasingly critical space domain,” said Woodburn.
BAE’s Ambitious Deal Unfolds
The acquisition deal was first unveiled by BAE in August, targeting Ball Aerospace, renowned for its expertise in spacecraft, mission payloads, optical systems, and antenna systems. Ball Corp., originally known for its iconic Mason jars, had spun off the aerospace business in the 1990s, focusing on aluminum drink cans and packaging.
Unprecedented Opportunity Seized
Woodburn, when announcing the deal, emphasized the rarity of an opportunity to acquire a business of Ball Aerospace’s caliber, scale, and growth prospects. BAE, known for building military systems including Eurofighter jets and nuclear submarines, positioned the acquisition as a strategic move to bolster its space systems and defense technologies.
BAE’s $5.6B Bid For Ball Aerospace Arm Clears Review : Financial Implications
Ball Corp. plans to allocate approximately half of the $4.5 billion in proceeds, after taxes, from the transaction to debt reduction.
Antitrust Division’s Scrutiny
The November setback had seen the Antitrust Division issuing “second requests” for information about the deal. Standard protocol for mergers of a certain magnitude necessitates reporting to the Federal Trade Commission and the DOJ for review, with a mandatory 30-day waiting period before closing the transaction.
BAE’s $5.6B Bid For Ball Aerospace Arm Clears Review : Relentless Pursuit of Approval
A second request extends the waiting period until 30 days after the merging companies comply with the request, unless the agencies terminate the review sooner. Throughout this process, representatives for the DOJ remained tight-lipped and did not respond to requests for comment.
