BAE Systems has completed its acquisition of Tenix Defence following a decision by the Foreign Investment Review Board to allow the sale, which makes BAE Systems the largest defence company in Australia.
“I am delighted that the sale of the Tenix defence businesses has successfully concluded,” said Tenix Group Managing Director and Chief Executive Officer, Greg Hayes.
“Our strategic intent had been to foster international growth for Tenix’s defence businesses, so the sale to BAES, with its scale, depth of production and experience, will certainly help to achieve this objective.”
Defence Minister Joel Fitzgibbon also welcomed news of the sale’s completion.
“The acquisition provides BAE Systems Australia with a broad range of defence capability areas including naval shipbuilding, armoured vehicles, aircraft support, systems integration and electronic warfare,” said Mr Fitzgibbon.
To protect Defence interests, BAE have provided specific assurances through a Deed with Defence relating to the amphibious ships contract, agreed between the Commonwealth and Tenix in October 2007.
The Deed also prevents BAE Systems from buying ASC when it is sold by the Australian Government.