BAE Systems has agreed to acquire the aerospace division of conglomerate Ball Corp in a deal worth $5.6 billion. The move marks a significant expansion of a leading British defence corporation into the United States. BAE's recent growth has been supported by increased military spending, leading to a positive adjustment to its 2023 earnings outlook. The transaction is expected to be completed in the first half of 2024.

BAE is the UK's largest defence company, with a stock market value in excess of £30 billion. Its extensive product range includes a variety of weapons, from tanks to fighter jets to Vanguard submarines designed to carry Trident nuclear missiles. The deal is the most significant acquisition in BAE's history and will open the door for it to establish itself in the burgeoning aerospace sector, in which it has been largely absent. Financing for this purchase will be a combination of new external debt and existing cash reserves. In terms of revenue, BAE relies most heavily on the United States, followed by the UK and Saudi Arabia, according to data compiled by Bloomberg.

While Ball Corporation, the parent company of Ball Aerospace, is known for manufacturing cans and aerosol cans, its defense division focuses on specialized instruments and sensors. Interesting Ball defense technologies include laser communications systems that facilitate satellite communications between infantry and drones, as well as satellite tracking systems that allow spacecraft to monitor potential threats from other entities in space. Ball's aerospace division, based in Colorado, employs more than 5,200 people. In 2022, it generated revenues of $1.98 billion, representing approximately 13% of Ball Corp's total revenues.