BAESY Bae Systems Plc (PK)

1114 GMT - BAE Systems is among the most mentioned companies across news items over the past five hours, according to Factiva data. The U.K. defense-and-aerospace group's shares slid Thursday after it said it is buying buy Ball Corp.'s aerospace business for $5.55 billion in cash, in a deal expected to boost revenue visibility and provide a strong growth outlook. The company said the acquisition of Colorado-headquartered Ball Aerospace, which provides spacecraft, mission payloads, optical systems, and antenna systems, will improve its earnings per share and margins in the first year post-completion, expected in the first half of 2024. "The strategic and financial rationale is compelling, as we continue to focus on areas of high priority defence and Intelligence spending, strengthening our world class multi-domain portfolio," Chief Executive Charles Woodburn said. The deal looks a good fit, as BAE is looking to expand in nascent sectors like space as well as build on its capabilities in electronics, AJ Bell investment director Russ Mould said in a market comment. The price tag is the only downside, which looks a touch on the expensive side and potentially explains the lukewarm reaction, Mould writes. Shares are down 3.9% at 963.2 pence. Dow Jones & Co. owns Factiva. (joseph.hoppe@wsj.com)

(END) Dow Jones Newswires

August 17, 2023 07:30 ET (11:30 GMT)

Bae Systems (PK) (USOTC:BAESY)
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