A United Kingdom regulatory agency on Thursday approved the pending acquisition by Germany’s Rheinmetall of BAE Systems Global Combat Systems business, paving the way for the two companies to establish a military vehicle joint venture.
The two companies announced their proposed joint venture in January, with Rheinmetall owning 55 percent of the business and BAE the rest. The combination is between Rheinmetall Defence UK Ltd and BAE Systems Global Combat Systems Ltd.
The U.K. Competition and Markets Authority said the full text of its decision will be available shortly.
Rheinmetall said that with the U.K.’s approval, the joint venture will be “formally established in the coming weeks,” sustaining at least 450 jobs in Britain “and be able to better serve our customers’ future interests, including manufacture of the British Army’s new Mechanized Infantry Fighting vehicle and the upgrade of the Challenger 2 main battle tank fleet.”
Rheinmetall BAE Systems Land will remain based at BAE’s facility in Telford, England. The two companies are also expected to focus on the Trojan, Terrier and Warrior vehicle programs in the U.K.