The CMA is investigating the proposed acquisition by Rheinmetall Defense UK Ltd of BAE Systems Global Combat Systems Ltd.
Phase 1 Invitation to comment: closes 30 April 2019
15 April 2019: The Competition and Markets Authority (CMA) is considering whether it is or may be the case that this transaction, if carried into effect, will result in the creation of a relevant merger situation under the merger provisions of the Enterprise Act 2002 and, if so, whether the creation of that situation may be expected to result in a substantial lessening of competition within any market or markets in the United Kingdom for goods or services.
Launch of merger inquiry
12 April 2019: The CMA announced the launch of its merger inquiry by notice to the parties.
Anticipated Acquisition by Rheinmetall Defence UK Ltd of BAE Systems Global Combat Systems Ltd
Notice under section 96(2A) of the Enterprise Act 2002(the Act) published pursuant to section 107(1)(i) of the Act.
The Competition and Markets Authority (CMA) hereby gives notice pursuant to section 96(2A) of the Act that the merger notice provided by Rheinmetall Defence UK Ltd and BAE Systems Global Combat Systems in relation to the purchase of 55% of the entire issued share capital of BAE Systems Global Combat Systems by Rheinmetall Defense UK Ltd (the Merger) meets the requirements of section 96(2) of the Act.
The initial period defined in section 34ZA(3) of the Act in relation to the Merger will therefore commence on the first working day after the date of this notice, ie on 15 April 2019.
The deadline for the CMA to announce its decision whether to refer the Merger for a Phase 2 investigation is therefore 13 June 2019.
(EDITOR’S NOTE: The inquiry follows £28.6 million the sale in January by BAE of a 55% stake in BAE Systems Global Combat Systems Ltd, its combat vehicles unit, to Germany's Rheinmetall AG.
The companies said they would form joint venture, named Rheinmetall BAE Systems Land, which they expect to play "a major role" in supplying the British Army with new armored vehicles.
The CMA is to investigate whether the joint venture will reduce competition in the UK.)