BAE Systems reveals full economic contribution as the UK defense industry is besieged by foreign bidders
BAE Systems has revealed its full contribution to the economy as the UK defense industry is besieged by foreign bidders.
According to a study by Oxford Economics, contractors supported 143,000 UK jobs and generated more than £ 10 billion in UK GDP in 2020.
That’s 0.5 percent of the UK economy as a whole.
Attention: BAE Systems supported 143,000 UK jobs in 2020, generating over £ 10 billion in UK GDP.
The company employs 35,300 people in the UK and more than 40% of its staff are based in poor areas.
Many of Britain’s largest defense groups and their rivals are believed to play an important role in the level-up agenda.
However, the broader defense and aerospace industry has been targeted by a large number of foreign buyers. Companies such as Cobham, Ultra Electronics and Meggitt are prey to bidders with billions of pounds of transactions.
Business secretary Kwasi Kwarteng is approaching a delicate industry acquisition next week when the Competitive Markets Authority (CMA) presents a report on a £ 2.6 billion raid on Ultra Electronics by private equity giant Advent International. Face major tests. ..
Kwarteng ordered the CMA to investigate the transaction last year.
Politicians and experts are working to prevent or severely limit Ultra partnerships as they manufacture important equipment such as the submarine hunting sonobuoy, which may be the key to ensuring UK maritime safety. I requested the director. Sir Hazeltine, a Tory grande, Sir West, a former Admiral of the United Kingdom, and Tobias Ellwood, chairman of the Defense Commission, are among those who criticized the Ultra contract.
Ministers were given the authority to intervene in foreign acquisitions earlier this month. National Security Investment (NSI) law forces the government to scrutinize transactions in 17 delicate industries.
This includes energy, artificial intelligence, nuclear power, space, and advanced robotics.
This week, the acquisition of artificial intelligence specialist Blue Prism could spill over to shareholders and become one of the first deals called under the law. Ultra’s investigation was initiated under the previous law, the Business Act of 2002, and is not considered by the NSI Act. BAE, along with Rolls-Royce, is one of two companies that cannot be sold to foreign bidders because the government owns so-called “golden shares.” The £ 18 billion company has 50 sites in the UK and a workforce of approximately 90,000 people worldwide. In 2020, it exported £ 3.9 billion of goods and services. That’s 0.7% of all UK exports.
Charles Woodburn, Chief Executive Officer of BAE Systems, said:
Defense Minister Jeremy Quinn said the BAE “helps improve the country by supporting tens of thousands of jobs.”
BAE Systems Strengthens UK Economy £ 10 Billion
Source link BAE Systems Strengthens UK Economy £ 10 Billion