Editing BAE Systems (section)

==History==
===Predecessors===
[[File:Spitfire VII Langley USA.jpg|thumb|[[Supermarine]], the manufacturer of the [[Supermarine Spitfire|Spitfire]], was a predecessor company of BAE Systems. It was purchased by [[Vickers-Armstrongs]], which itself was merged into the [[British Aircraft Corporation]] in 1960.]]
[[British Aerospace]] bought [[Marconi Electronic Systems]] for £7.7&nbsp;billion on 30 November 1999 and merged with it to form BAE Systems.<ref name="scotsman2000">{{Cite news |first=Andrew|last=Turpin |title= BAE eyes US targets after profit rockets |work=The Scotsman |location=UK |publisher=The Scotsman Publications |page=26 |date= 4 March 2000}}</ref> The company is the successor to many of the most famous British aircraft, defence electronics and warship manufacturers. Predecessor companies built the [[de Havilland Comet|Comet]], the world's first commercial jet airliner; the [[Hawker Siddeley Harrier|Harrier]] "jump jet", the world's first operational [[V/STOL|vertical/short take-off and landing]] (VTOL) aircraft; the "groundbreaking"<ref>{{Cite news |first=James|last=Dow |title=Edinburgh's first line of defence |url=http://thescotsman.scotsman.com/business.cfm?id=840772004 |archive-url=https://web.archive.org/web/20040815131803/http://thescotsman.scotsman.com/business.cfm?id=840772004 |archive-date=15 August 2004|work=The Scotsman |location=UK |date=23 July 2004 |access-date=26 September 2007}}</ref> Blue Vixen radar carried by [[BAE Sea Harrier#Specifications (Sea Harrier FA.2)|Sea Harrier FA2s]] and which formed the basis of the Eurofighter's [[Euroradar CAPTOR|CAPTOR]] radar; and co-produced the [[Concorde]] supersonic airliner with [[Aérospatiale]].<ref>{{cite web|url=https://www.heritageconcorde.com/who-built-concorde|title=Who Built Concorde?|publisher=Heritage Concorde|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225211920/https://www.heritageconcorde.com/who-built-concorde|archive-date=25 February 2018|url-status=live}}</ref>

British Aerospace was a civil and [[military aircraft]] manufacturer, as well as a provider of military land systems. The company had emerged from the massive consolidation of UK aircraft manufacturers since World War II. British Aerospace was formed on 29 April 1977, by the nationalisation and merger of the [[British Aircraft Corporation]] (BAC), the [[Hawker Siddeley|Hawker Siddeley Group]] and [[Scottish Aviation]].<ref name="compcomm"/> Both BAC and Hawker Siddeley were themselves the result of various mergers and acquisitions.<ref name="lineage">{{cite web |url=http://production.investis.com/heritage/storage/lineage/?t=lineage |title=The BAE Systems Lineage |access-date=13 September 2007 |work=BAE Systems Heritage |publisher=BAE Systems plc |archive-url=https://web.archive.org/web/20080421093532/http://production.investis.com/heritage/storage/lineage/?t=lineage |archive-date=21 April 2008 |url-status=live}} (Click on Air tab.)</ref><!-- Citation based on "Air" section of this url, requires "Air" tab to be clicked, unfortunately no way of automating this in link -->

Marconi Electronic Systems was the defence subsidiary of British engineering firm the [[General Electric Company]] (GEC), dealing largely in military [[system integrator|systems integration]], as well as naval and land systems. Marconi's heritage dates back to [[Guglielmo Marconi]]'s Wireless Telegraph & Signal Company, founded in 1897.<ref>{{cite web |url=http://production.investis.com/heritage/nonflash/timeline/1874_guglielmo_marconi/ |archive-url=https://web.archive.org/web/20080421093519/http://production.investis.com/heritage/nonflash/timeline/1874_guglielmo_marconi/ |archive-date=21 April 2008 |title=1874 Guglielmo Marconi |access-date=13 September 2007 |work=BAE Systems Heritage |publisher=BAE Systems plc}}</ref> GEC purchased [[English Electric]] (which included Marconi) in 1968 and thereafter used the Marconi brand for its defence businesses (as GEC-Marconi and later Marconi Electronic Systems). GEC's own defence heritage dates back to World War I, when its contribution to the war effort included radios and bulbs. World War II consolidated this position, as the company was involved in important technological advances, notably the [[cavity magnetron]] for [[radar]].<ref>{{cite web |url=http://www.connected-earth.com/Galleries/Prideofownership/Economicfactors/Anewindustry/index.htm |title=A new industry |access-date=12 September 2007 |work=connected-earth.com |quote=during the Second World War it developed the cavity magnetron for radar |archive-url= https://web.archive.org/web/20070503152859/http://www.connected-earth.com/Galleries/Prideofownership/Economicfactors/Anewindustry/index.htm |archive-date= 3 May 2007}}</ref> Between 1945 and 1999, GEC-Marconi/Marconi Electronic Systems became one of the world's most important [[defence contractor]]s. GEC's major defence related acquisitions included [[Associated Electrical Industries]] in 1967,<ref name="cc">{{cite web |url=http://www.competition-commission.org.uk/rep_pub/reports/1989/fulltext/250c2.pdf |title=The companies involved, and the merger situations |access-date=13 September 2007 |year=1989 |publisher=Competition Commission|archive-url= https://web.archive.org/web/20070926044921/http://www.competition-commission.org.uk/rep_pub/reports/1989/fulltext/250c2.pdf |archive-date= 26 September 2007 |url-status= usurped}}</ref> [[Yarrow Shipbuilders Limited|Yarrow Shipbuilders]] in 1985,<ref name="cc"/> [[Plessey]] companies in 1989,<ref name="plesseyferranti">{{Cite news |first=Chris |last=Leadbeater |title=A marriage of convenience 'GEC and Siemens propose to create a major new European partnership. The acquisition of Plessey ... will be the springboard for further substantial expansion together.' |work=Financial Times |date=3 July 1990}}</ref> parts of [[Ferranti]]'s defence business in 1990,<ref name="plesseyferranti"/> the rump of Ferranti when it went into receivership in 1993/1994, [[Vickers Shipbuilding and Engineering]] in 1995<ref>{{Cite news |first=Roger |last=Cowe |title=Weinstock's £1bn finale |work=The Guardian |location=UK |publisher=Guardian Newspapers |date=4 July 1999}}</ref> and [[Kvaerner Govan|Kværner Govan]] in 1999.<ref>{{cite news |title=Deal reached on shipyard future |url=http://news.bbc.co.uk/1/hi/scotland/563784.stm |work=BBC News |date=14 December 1999 |access-date=13 September 2007}}</ref> In June 1998, MES acquired [[Tracor]], a major American defence contractor, for £830&nbsp;million (about US$1.4&nbsp;billion).<ref>{{Cite news |title= GEC Completes Tracor Acquisition|url= http://business.highbeam.com/436978/article-1G1-50118227/gec-completes-tracor-acquisition|archive-url= https://web.archive.org/web/20151017061110/http://business.highbeam.com/436978/article-1G1-50118227/gec-completes-tracor-acquisition|url-status= dead|archive-date= 17 October 2015|work= Defense Week|date= 29 June 1998|access-date= 29 June 2015}}</ref>

===Formation===
The 1997 merger of American corporations [[Boeing]] and [[McDonnell Douglas]], which followed the formation in 1995 of [[Lockheed Martin]], the world's largest defence contractor, increased the pressure on European defence companies to consolidate. In June 1997, British Aerospace Defence managing director [[John Weston (businessman)|John Weston]] commented "Europe&nbsp;... is supporting three times the number of contractors on less than half the budget of the US."<ref>{{Cite news |first=Andrea |last=Rothman |last2=Landberg, Reed |title=Europe Defense Firms Feel Pressure to Unite |url=https://archive.seattletimes.com/archive/19970615/2544541/europe-defense-firms-feel-pressure-to-unite |work=The Seattle Times |date=15 June 1997 |access-date=12 September 2007 |archive-url=https://web.archive.org/web/20110519105921/http://community.seattletimes.nwsource.com/archive/?date=19970615&slug=2544541 |archive-date=19 May 2011 |url-status=live}}</ref> European governments wished to see the merger of their defence manufacturers into a single entity, a "European Aerospace and Defence Company".<ref>{{cite news |title=Business: The Company Filed Defence merger on the radar |url=http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |work=BBC News |date=10 July 1998 |access-date=15 September 2007 |archive-url=https://web.archive.org/web/20051124122609/http://news.bbc.co.uk/1/hi/business/the_company_file/130305.stm |archive-date=24 November 2005 |url-status=live}}</ref>

As early as 1995, British Aerospace and the German aerospace and defence company [[DaimlerChrysler Aerospace]] (DASA) were said to be keen to create a transnational aerospace and defence company.<ref>{{Cite news |first=Adam |last=Jones|title=Europe cries foul as New BAe emerges |work=[[The Times]] |location=UK |date=20 January 1999}}</ref> The two companies envisaged including Aérospatiale, the other major European aerospace company, but only after its privatisation.<ref>{{Cite news |first1=Pierre|last1=Sparaco|last2=Morrocco |first2=John D. |title=French Government Grapples With Aerospace Strategy |work=Aviation Week and Space Technology |publisher=McGraw-Hill |date=30 June 1997}}</ref> The first stage of this integration was seen as the transformation of Airbus from a consortium of British Aerospace, DASA, Aérospatiale and [[Construcciones Aeronáuticas|Construcciones Aeronáuticas SA]] into an integrated company; with this aim British Aerospace and DASA were united against the various objections of Aérospatiale.<ref name="BAeDASArelations">{{Cite news |last=Gray |first=Bernard |last2=Skapinker |first2=Michael |date=24 June 1997 |title=Giant waiting in the wings: Bernard Gray and Michael Skapinker ask if Europe's defence industry can consolidate in time to challenge US dominance |work=Financial Times}}</ref> As well as Airbus, British Aerospace and DASA were partners in the [[Panavia Tornado]] and Eurofighter Typhoon aircraft projects. Merger discussions began between British Aerospace and DASA in July 1998, just as French participation became more likely with the announcement that Aérospatiale was to merge with [[Matra]] and emerge with a diluted French government shareholding.<ref>{{Cite news |title=BAe and Dasa discuss proposals for merger: Aerospace groups still have 'important issues to resolve'|work=Financial Times |page=1 |date=24 July 1998}}</ref> A merger was agreed between British Aerospace chairman [[Richard Evans (businessman)|Richard Evans]] and DASA CEO [[Jürgen E. Schrempp|Jürgen Schrempp]].<ref name="ftBAeDASA">{{Cite news |first=Peter |last=Spiegel|title=The largest aerospace companies gather next week for the Farnborough air show but the event will be without its long-time unofficial host|work=Financial Times|page=11|date=17 July 2004}}</ref>

Meanwhile, GEC was also under pressure to participate in defence industry consolidation. Reporting the appointment of George Simpson as GEC managing director in 1996, ''The Independent'' said "some analysts believe that Mr Simpson's inside knowledge of BAe, a long-rumoured GEC bid target, was a key to his appointment. GEC favours forging a national 'champion' defence group with BAe to compete with the giant US organisations."<ref>{{Cite news |first=Russell|last=Hotten |title=GEC confirms Simpson job|work=The Independent |location=UK |publisher=Newspaper Pub |page=17|date=19 March 1996}}</ref> When GEC put MES up for sale on 22 December 1998, British Aerospace abandoned the DASA merger in favour of purchasing its British rival. The merger of British Aerospace and MES was announced on 19 January 1999.<ref>BAE Systems Annual Report 1999 22. BAE Systems plc (2000).</ref> Evans stated in 2004 that his fear was that an American defence contractor would acquire MES and challenge both British Aerospace and DASA.<ref name="ftBAeDASA"/> The merger created a [[vertically integrated]] company which ''The Scotsman'' described as "[a combination of British Aerospace's] contracting and platform-building skills with Marconi's coveted electronics systems capability",<ref>{{Cite news |first=Louise|last=Nevill|title=BAe and Marconi moving toward merger|work=The Scotsman |location=UK |publisher=The Scotsman Publications|page=17|date=4 January 1999}}</ref> for example combining the manufacturer of the Eurofighter with the company that provided many of the aircraft's electronic systems; British Aerospace was MES's biggest customer.<ref>{{Cite news |title=Speculation Rises on GEC Merger |work=The Scotsman |location=UK |publisher=The Scotsman Publications |date=28 December 1998}}</ref> In contrast, DASA's response to the breakdown of the merger discussion was to merge with [[Aérospatiale]] to create the European Aeronautic Defence and Space Company ([[EADS]]), a [[horizontal integration]].<ref>{{cite news|url=https://www.theguardian.com/business/2000/jul/24/baesystemsbusiness|title=Airbus feud threatens UK jobs|date=24 July 2000|newspaper=The Guardian|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306044647/https://www.theguardian.com/business/2000/jul/24/baesystemsbusiness|archive-date=6 March 2019|url-status=live}}</ref>

Seventeen undertakings were given by BAE Systems to the [[Department of Trade and Industry (United Kingdom)|Department of Trade and Industry]] which prevented a reference of the merger to the [[Monopolies and Mergers Commission]]. These were largely to ensure that the integrated company would tender sub-contracts to external companies on an equal basis with its subsidiaries. Another condition was the "[[Chinese wall|firewalling]]" of former British Aerospace and MES teams on defence projects such as the [[Joint Strike Fighter program|Joint Strike Fighter]] (JSF). In 2007 the government announced that it had agreed to release BAE Systems from ten of the undertakings due to "a change in circumstances".<ref>{{Cite news |title=UK Releases BAE SYSTEMS From Undertakings For Marconi Electronic Merger |work=Defense Daily International |date= 9 February 2007}}</ref>

BAE Systems inherited the UK government-owned [[golden share|"golden" share]] that was established when British Aerospace was privatised. This unique share prevents amendments of certain parts of the company's [[Articles of Association (law)|Articles of Association]] without the permission of the Secretary of State.<ref name="compcomm">{{cite web |url=http://www.competition-commission.org.uk/rep_pub/reports/1991/fulltext/296c2.pdf |title=BAe and Thomson-CSF SA: A report on the proposed merger |access-date=8 December 2005 |date=6 February 1991 |publisher=[[Competition Commission]] |archive-url=https://web.archive.org/web/20060214161332/http://www.competition-commission.org.uk/rep_pub/reports/1991/fulltext/296c2.pdf |archive-date=14 February 2006 |url-status=usurped}}</ref> These Articles require that no foreign person or persons acting together may hold more than 15% of the company's shares.<ref>{{cite web|url=https://investors.baesystems.com/shareholder-information/foreign-shareholding/2012|title=Individual Foreign Shareholding Restrictions|publisher=BAE Systems|access-date=25 February 2018|archive-url=https://web.archive.org/web/20171030140959/http://investors.baesystems.com/shareholder-information/foreign-shareholding/2012|archive-date=30 October 2017|url-status=live}}</ref>

===2000s===
BAE Systems' first annual report identified Airbus, support services to militaries and integrated systems for air, land and naval applications as key areas of growth. It also stated the company's desire to both expand in the US and participate in further consolidation in Europe. BAE Systems described 2001 as an "important year" for its European joint ventures, which were reorganised considerably. The company has described the rationale for expansion in the US; "[it] is by far the largest defence market with spend running close to twice that of the Western European nations combined. Importantly, US investment in research and development is significantly higher than in Western Europe."<ref>{{cite web |url=http://production.investis.com/investors/news/rp/rp2001/ar00/ar00.pdf|archive-url=https://web.archive.org/web/20071127160425/http://production.investis.com/investors/news/rp/rp2001/ar00/ar00.pdf|archive-date=27 November 2007|title=BAE Systems 2000 Annual Report |access-date=5 October 2007 |publisher=BAE Systems |page=6}}</ref> When [[Dick Olver]] was appointed chairman in July 2004 he ordered a review of the company's businesses which ruled out further European acquisitions or joint ventures and confirmed a "strategic bias" for expansion and investment in the US.<ref>{{Cite news |first=Peter |last=Spiegel|title=Oil or missiles, the constant is power|work=Financial Times|date=7 December 2004}}</ref> The review also confirmed the attractiveness of the land systems sector and, with two acquisitions in 2004 and 2005, BAE moved from a limited land systems supplier to the second largest such company in the world. This shift in strategy was described as "remarkable" by the ''[[Financial Times]]''.<ref name="baelandshift">{{Cite news |first=Peter |last=Spiegel|title=BAE prepares for increase land war spend|work=Financial Times|date=25 June 2005}}</ref> Between 2008 and early 2011 BAE acquired five [[Computer security|cybersecurity]] companies in a shift in strategy to take account of reduced spending by governments on "traditional defence items such as warships and tanks".<ref>{{Cite news |title=BAE switches its focus from tanks and warships to cyber security |author=Robertson, David |newspaper=[[The Times]] |date=15 January 2011}}</ref>

In 2000 [[Matra Marconi Space]], a joint BAE Systems/Matra company, was merged with the space division of DASA to form [[Astrium]]. On 16 June 2003 BAE sold its 25% share of Astrium for £84&nbsp;million; however, due to the lossmaking status of the company, BAE Systems invested an equal amount for "restructuring".<ref>{{Cite news |first=Mark |last=Odell |title= BAE agrees new deal for Astrium |work=Financial Times |page= 15 |date= 1 February 2003}}</ref> BAE Systems sold its 54% majority share of [[BAE Systems Canada]], an electronics company, in April for CA$310 (approximately £197&nbsp;million as of December 2010).<ref name="acquisitondisposal">{{cite web |url=http://bae-systems-investor-relations.production.investis.com/strategy-and-performance/acquisitions-and-disposals.aspx |archive-url=https://web.archive.org/web/20110303222216/http://bae-systems-investor-relations.production.investis.com/strategy-and-performance/acquisitions-and-disposals.aspx |archive-date=3 March 2011 |title=Acquisitions and Disposals|publisher=BAE Systems plc |access-date=22 December 2010}}</ref> In November 2001, the company announced the closure of the Avro Regional Jet ([[BAe 146|Avro RJ]]) production line at [[Woodford, Cheshire|Woodford]] and the cancellation of the Avro RJX, an advanced series of the aircraft family, as the business was "no longer viable".<ref>{{Cite press release |title=BAE SYSTEMS closes the RJX Programme |publisher=BAE Systems plc |date=27 November 2001 |url=http://www.baesystems.com/Newsroom/NewsReleases/2001/press_27112001.html |access-date=4 October 2007 |archive-url= https://web.archive.org/web/20071020052514/http://baesystems.com/Newsroom/NewsReleases/2001/press_27112001.html |archive-date= 20 October 2007 |url-status= live}}</ref> The final Avro RJ to be completed became the last British civil airliner. In November 2001 BAE sold its 49.9% share of [[Thomson Marconi Sonar]] to Thales for £85&nbsp;million.<ref name="acquisitondisposal"/> A further step of European defence consolidation was the merger of BAE's share of [[Matra BAe Dynamics]] and the missile division of Alenia Marconi Systems (AMS) into [[MBDA]] in December. MBDA thus became the world's second largest missile manufacturer.<ref>{{Cite news |title=EADS, BAE and Finmeccanica Complete MBDA Merger|work=Defense Daily International |date=21 December 2001|quote=the new MBDA, the world's second largest missile manufacturer behind Raytheon}}</ref> Although EADS (now [[Airbus SE]]) was later reported to be interested in acquiring full control of MBDA, BAE said that, unlike Airbus, MBDA is a "core business".<ref>{{Cite news |title= MBDA prepares for consolidation |work=Financial Times |date= 16 March 2006}}</ref><ref>{{Cite news |first=Douglas |last=Barrie |last2=Wall, Robert|author3= Sparaco, Pierre |title=High-Stakes Gamble; BAE Systems bets future on defense, using its Airbus share as ante|work=Aviation Week & Space Technology |date=17 April 2006}}</ref>

[[File:Astute2cropped.jpg|thumb|left|The {{sclass|Astute|submarine}} project caused BAE to issue a profit warning in 2002 and invest £250&nbsp;million to overcome its difficulties.]]
In June 2002, BAE Systems confirmed it was in takeover discussions with [[TRW Inc.|TRW]], an American aerospace, automotive and defence business. This was prompted by [[Northrop Grumman]]'s £4.1&nbsp;billion (approximately US$6&nbsp;billion in 2002) hostile bid for TRW in February 2002. A bidding war between BAE Systems, Northrop and [[General Dynamics]] ended on 1 June when Northrop's increased bid of £5.1&nbsp;billion was accepted. On 11 December 2002, BAE Systems issued a shock profit warning due to cost overruns of the [[BAE Systems Nimrod MRA4|Nimrod MRA4]] maritime reconnaissance/attack aircraft and the {{sclass|Astute|submarine}} projects.<ref>{{Cite news |first=Mark|last=Odell |title=BAE warning sends share price to 7-year low: News of 'additional issues' on two big defence contracts takes market by surprise|work=Financial Times |date=12 December 2002}}</ref> On 19 February 2003 BAE took a charge of £750&nbsp;million against these projects and the [[Ministry of Defence (United Kingdom)|Ministry of Defence]] (MoD) agreed to pay a further £700&nbsp;million of the cost.<ref>{{Cite news |first=Mark|last=Odell|title=Whitehall re-draws key BAE defence contracts|work=Financial Times |date=20 February 2003}}</ref> In 2000 the company had taken a £300&nbsp;million "loss charge" on the Nimrod contract which was expected to cover "all the costs of completion of the current contract".<ref>{{Cite news |first=Kevin |last=Done |title= Nimrod refit turns into nightmare |work=Financial Times |page= 24 |date= 13 December 2002}}</ref> The troubled Nimrod project would ultimately be cancelled as part of the [[Strategic Defence and Security Review 2010|2010 Strategic Defence and Security Review]] (SDSR).<ref>{{cite news|url=https://www.telegraph.co.uk/news/uknews/defence/8287334/Nimrod-a-sorry-saga-with-a-messy-ending.html|title=Nimrod: a sorry saga with a messy ending|date=27 January 2011|newspaper=The Telegraph|access-date=2 March 2019|archive-url=https://web.archive.org/web/20190306050859/https://www.telegraph.co.uk/news/uknews/defence/8287334/Nimrod-a-sorry-saga-with-a-messy-ending.html|archive-date=6 March 2019|url-status=live}}</ref>

The UK government, following a cabinet row described as "one of the most bitter Cabinet disputes over defence contracts since the [[Westland affair|Westland helicopter affair]] in 1985", ordered 20 [[BAE Hawk]] trainer aircraft with 24 options in July 2003 in a deal worth £800&nbsp;million.<ref name="hawk03">{{Cite news |first=Michael |last=Evans|last2=Benett, Rosemary |title= Cabinet battle over British jet contract |work=[[The Times]] |location=UK |date=31 July 2003}}</ref> The deal was significant because it was a factor in India's decision to finalise a £1&nbsp;billion order for 66 Hawks in March 2004.<ref name="hawk03"/><ref>{{Cite news |first=Russell|last=Hotten |title= Protests loom over Hawk deal with India |work=[[The Times]] |location=UK|publisher=Times Newspapers |date=20 March 2004}}</ref> Also in July 2003 BAE Systems and [[Finmeccanica]] announced their intention to set up three joint venture companies, to be collectively known as [[Eurosystems]]. These companies would have pooled the avionics, [[C4ISTAR]] and communications businesses of the two companies.<ref>{{cite news |title=BAE ties up £2.6bn Italian deal |url=http://news.bbc.co.uk/1/hi/business/3043328.stm |work=BBC News |date=3 June 2003 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20070313182258/http://news.bbc.co.uk/1/hi/business/3043328.stm |archive-date=13 March 2007 |url-status=live}}</ref> However, the difficulties of integrating the companies in this way led to a re-evaluation of the proposal; BAE Systems' 2004 Annual Report states that "recognising the complexity of the earlier proposed Eurosystems transaction with Finmeccanica we have moved to a simpler model". The main part of this deal was the dissolution of AMS and the establishment of [[SELEX Sensors and Airborne Systems]]; BAE Systems sold its 25% share of the latter to Finmeccanica for €400&nbsp;million (approximately £270&nbsp;million c. 2007) in March 2007.<ref>{{Cite news |first=Patricia J.|last=Parmalee |title=Selex Sale Sealed |work=Aviation Week & Space Technology |publisher=The McGraw-Hill Companies |date=9 April 2007}}</ref>

In May 2004, it was reported that the company was considering selling its shipbuilding divisions, [[BAE Systems Naval Ships]] and [[BAE Systems Submarines]]. It was understood that General Dynamics wished to acquire the submarine building facilities at [[Barrow-in-Furness]], while [[VT Group]] was said to be interested in the remaining yards on the [[River Clyde|Clyde]].<ref name="mergerships"/> Instead, in 2008 BAE Systems merged its Surface Fleet arm with the shipbuilding operations of VT Group to form [[BVT Surface Fleet]], an aim central to the British Government's [[Defence Industrial Strategy]].<ref>{{Cite news |first=David |last=Robertson |title=BAE-VT merger |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2141581.ece |work=[[The Times]] |location=London |date=26 July 2007 |access-date=7 September 2007 |archive-url=https://web.archive.org/web/20110611170925/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article2141581.ece |archive-date=11 June 2011 |url-status=dead}}</ref><ref>{{cite news |author=<!--Staff writer(s)/no by-line.--> |title=Warship deal takes a step closer |url=http://news.bbc.co.uk/1/hi/scotland/glasgow_and_west/7481923.stm |work=BBC News |location= |date=1 July 2008 |access-date=2021-03-17}}</ref>

[[File:1BFV01.jpg|thumb|BAE's £2.5&nbsp;billion purchase of United Defense in 2005 added the [[M2 Bradley|M2/M3 Bradley]] family of armoured vehicles to its product line.]]
On 4 June 2004, BAE Systems outbid General Dynamics for [[Alvis Vickers]], the UK's main manufacturer of armoured vehicles.<ref>{{cite news |title=BAE triumphs in tank firm battle |url=http://news.bbc.co.uk/1/hi/business/3775713.stm |work=BBC News |date=4 June 2004 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20040703090213/http://news.bbc.co.uk/1/hi/business/3775713.stm |archive-date=3 July 2004 |url-status=live}}</ref> Alvis Vickers was merged with the company's [[RO Defence]] unit to form BAE Systems Land Systems. Recognising the lack of scale of this business compared to General Dynamics, BAE Systems executives soon identified the US defence company [[United Defense|United Defense Industries]] (UDI), a major competitor to General Dynamics, as a main acquisition target.<ref name="baelandshift"/> On 7 March 2005 BAE announced the £2.25&nbsp;billion (approximately US$4.2&nbsp;billion c. 2005) acquisition of UDI.<ref>{{cite news |title=BAE Systems to buy US rival UDI |url=http://news.bbc.co.uk/1/hi/business/4324733.stm |work=BBC News |date=7 March 2005 |access-date=13 September 2007 |archive-url=https://web.archive.org/web/20070224144722/http://news.bbc.co.uk/1/hi/business/4324733.stm |archive-date=24 February 2007 |url-status=live}}</ref> UDI, now [[BAE Systems Land and Armaments]], manufactures combat vehicles, artillery systems, naval guns, missile launchers and precision guided munitions.<ref>{{cite web |url=https://www.businesswire.com/news/home/20050624005329/en/BAE-SYSTEMS-Completes-Acquisition-United-Defense-Industries |title=BAE Systems Completes Acquisition of United Defense Industries; Creates Global Land Systems Enterprise|publisher=Businesswire|date=24 June 2005|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225205925/https://www.businesswire.com/news/home/20050624005329/en/BAE-SYSTEMS-Completes-Acquisition-United-Defense-Industries|archive-date=25 February 2018|url-status=live}}</ref>

In December 2005, BAE Systems announced the sale of its German naval systems subsidiary, Atlas Elektronik, to [[ThyssenKrupp]] and EADS. The ''Financial Times'' described the sale as "cut price" because French company Thales bid €300&nbsp;million, but was blocked from purchasing Atlas by the German government on national security grounds.<ref>{{Cite news |first=James |last=Boxell |title= BAE forced into cut-price sale |work=Financial Times |date= 31 December 2005}}</ref> On 31 January 2006 the company announced the sale of BAE Systems Aerostructures to [[Spirit AeroSystems, Inc.]],<ref>{{cite news |title=BAE sells Prestwick unit for £80m |url=http://news.bbc.co.uk/1/hi/scotland/4666854.stm |work=BBC News |date=31 January 2005 |access-date=7 September 2007 |archive-url= https://web.archive.org/web/20070904051513/http://news.bbc.co.uk/1/hi/scotland/4666854.stm |archive-date= 4 September 2007 |url-status= live}}</ref> having said as early as 2002 that it wished to dispose of what it did not regard as a "core business".<ref>{{cite news |url= http://news.bbc.co.uk/1/hi/scotland/2326285.stm |title= Fears for future of BAE plant |work= BBC News |date= 14 October 2002 |access-date= 31 January 2006 |archive-url= https://web.archive.org/web/20040705141855/http://news.bbc.co.uk/1/hi/scotland/2326285.stm |archive-date= 5 July 2004 |url-status= live}}</ref>

On 18 August 2006 Saudi Arabia signed a contract worth £6&nbsp;billion to £10&nbsp;billion for 72 Eurofighter Typhoons, to be delivered by BAE Systems.<ref>{{cite news |url= http://news.bbc.co.uk/1/hi/business/5262120.stm |title= Saudi Arabia buys 72 Eurofighters|work=BBC News |date=18 August 2006 |access-date=18 August 2006 |archive-url= https://web.archive.org/web/20060820084815/http://news.bbc.co.uk/1/hi/business/5262120.stm |archive-date= 20 August 2006 |url-status= live}}</ref> On 10 September 2006 the company was awarded a £2.5&nbsp;billion contract for the upgrade of 80 [[Royal Saudi Air Force]] Tornado IDSs.<ref>{{Cite news |last=Steiner |first=Rupert|title=BAE clinches new £2.5bn Tornado deal with Saudis|publisher=[[The Business (magazine)|The Business]]|date= 10 September 2006}}</ref> One of BAE Systems' major aims, as highlighted in the 2005 Annual Report, was the granting of increased technology transfer between the UK and the US. The F-35 (JSF) programme became the focus of this effort, with British government ministers such as [[Paul Drayson, Baron Drayson|Lord Drayson]], [[Defence Procurement Agency|Minister for Defence Procurement]], suggesting the UK would withdraw from the project without the transfer of technology that would allow the UK to operate and maintain F-35s independently. On 12 December 2006, Lord Drayson signed an agreement which allows "an unbroken British chain of command" for operation of the aircraft.<ref>{{Cite news |first=Tom|last=Baldwin |title=Britain in fighter deal with US |work=[[The Times]] |location=UK |date=13 December 2006 <!--|access-date=2 March 2007-->}}</ref> On 22 December 2006 BAE received a £947&nbsp;million contract to provide guaranteed availability of [[Royal Air Force]] (RAF) Tornados.<ref>{{Cite news |first=David |last=Robertson |title=BAE emerges from the political storm with MoD Tornado contract |work=[[The Times]] |location=UK |date=23 December 2006}}</ref>

In May 2007 the company announced its subsidiary BAE Systems Inc. was to purchase [[Armor Holdings]] for £2.3&nbsp;billion (approximately US$4.5&nbsp;billion c. 2007) and completed the deal on 31 July 2007.<ref name="Armor">{{Cite press release |title= BAE Systems plc announces proposed acquisition of Armor Holdings Inc. |publisher=BAE Systems plc |date= 7 May 2007 |url= http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_armor.pdf |access-date=7 May 2007 |archive-url= https://web.archive.org/web/20070616024943/http://www.baesystems.com/BAEProd/groups/public/documents/bae_publication/bae_pdf_armor.pdf |archive-date= 16 June 2007 |url-status= live}}</ref><ref>{{Cite press release |title= BAE Systems completes acquisition of Armor Holdings Inc. |publisher=BAE Systems plc |date= 31 July 2007 |url= http://www.baesystems.com/Newsroom/NewsReleases/autoGen_107631191035.html|access-date=7 September 2007 |archive-url= https://web.archive.org/web/20070930154544/http://www.baesystems.com/Newsroom/NewsReleases/autoGen_107631191035.html |archive-date= 30 September 2007 |url-status= live}}</ref> The company was a manufacturer of tactical wheeled vehicles and a provider of vehicle and individual armour systems and survivability technologies.<ref name="Armor"/> BAE Systems (and British Aerospace previously) was a technology partner to the [[McLaren]] Formula One team from 1996 to December 2007.<ref name="mclarenpr">{{Cite press release |title= Racing success as BAE Systems and Team McLaren Mercedes technology partnership celebrates 10 years |publisher=BAE Systems plc |date= 9 March 2006 |url= http://www.baesystems.com/Newsroom/NewsReleases/2006/press_090320061.html |access-date=25 March 2008 |archive-url=https://web.archive.org/web/20080515204738/http://www.baesystems.com/Newsroom/NewsReleases/2006/press_090320061.html|archive-date=15 May 2008}}</ref><ref>{{Cite news |title= 2008 Ultimate Season Review |work=F1 Racing|pages= 99–101 |publisher=Haymarket |date=March 2008}}</ref> The partnership originally focused on McLaren's F1 car's aerodynamics, eventually moving on to carbon fibre techniques, wireless systems and fuel management. BAE Systems' main interest in the partnership was to learn about the high speed build and operations processes of McLaren.<ref name="mclarenpr"/>

The company announced the acquisition of [[Tenix Defence]], a major Australian defence contractor in January 2008. The purchase was completed on 27 June for A$775&nbsp;million (£373&nbsp;million) making [[BAE Systems Australia]] that country's largest defence contractor.<ref>{{Cite news |first=David |last=Robertson |title=Ian King takes over at BAE Systems and promises to raise standards |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4228109.ece |work=[[The Times]] |location=London |date=28 June 2008 |access-date=25 July 2008 |archive-url=https://web.archive.org/web/20110612062528/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4228109.ece |archive-date=12 June 2011 |url-status=dead}}</ref> The MoD awarded BAE Systems a 15-year munitions contract in August 2008 worth up to £3&nbsp;billion, known as Munition Acquisition Supply Solution (MASS). The contract guaranteed supply of 80% of the UK Armed Forces' ammunition and required BAE to modernise its munitions manufacturing facilities.<ref>{{cite news |url=http://news.bbc.co.uk/1/hi/business/7573160.stm |title=BAE in £2bn MoD ammunition deal |work=BBC News |date=20 August 2008 |access-date=6 December 2011 |archive-url=https://web.archive.org/web/20080908142953/http://news.bbc.co.uk/1/hi/business/7573160.stm |archive-date=8 September 2008 |url-status=live}}</ref> BAE Systems expanded its intelligence and security business with the £531&nbsp;million purchase of [[BAE Systems Digital Intelligence|Detica Group]] in July 2008.<ref>{{cite web |first=Miles|last=Costello |title=BAE makes agreed £531m cash offer for Detica |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4419501.ece|work=[[The Times]]|location=London|date=29 July 2008|access-date=13 January 2009|archive-url= https://web.archive.org/web/20100522101515/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article4419501.ece|archive-date=22 May 2010|url-status=dead}}</ref> It continued this strategy with purchases of Danish cyber and intelligence company ETI for approximately $210&nbsp;million in December 2010, and [[Norkom|Norkom Group PLC]] the following month for €217&nbsp;million. The latter provides counter fraud and anti-money laundering solutions to the global financial services industry where its software assists institutions to comply with regulations on financial intelligence and monitoring.<ref>{{cite web |last=Hubler |first=David |url=http://washingtontechnology.com/articles/2010/12/22/danish-purchase-bae-global-cyber-and-intell.aspx |title=Purchase of Danish company expands BAE's cyber, intell capabilities |publisher=Washingtontechnology.com |date=22 December 2010 |access-date=6 December 2011 |archive-url=https://web.archive.org/web/20111006063637/http://washingtontechnology.com/articles/2010/12/22/danish-purchase-bae-global-cyber-and-intell.aspx |archive-date=6 October 2011 |url-status=live}}</ref><ref>{{cite web |url=http://www.baesystems.com/Newsroom/NewsReleases/autoGen_11101411115.html |title=BAE Systems announces recommended offer to acquire Norkom at |publisher=Baesystems.com |date=14 January 2011 |access-date=17 April 2011 |url-status=dead |archive-url=https://web.archive.org/web/20160104143231/http://www.baesystems.com/Newsroom/NewsReleases/autoGen_11101411115.html |archive-date=4 January 2016}}</ref>

====Airbus shareholding====
{{main|Airbus}}

BAE Systems inherited British Aerospace's share of Airbus Industrie, which consisted of two factories at [[Broughton, Flintshire|Broughton]] and [[Filton]]. These facilities manufactured wings for the Airbus family of aircraft. In 2001 Airbus was incorporated as Airbus SAS, a [[Société par actions simplifiée|joint stock company]]. In return for a 20% share in the new company BAE Systems transferred ownership of its Airbus plants (known as [[Airbus UK]]) to the new company.<ref>{{cite web |url=https://www.flightglobal.com/news/articles/bae-reveals-39airbus-uk39-proposal-64872/ |title=BAE reveals 'Airbus UK' proposal |date=25 April 2000 |publisher=Flight Global|access-date=25 February 2018 |archive-url=https://web.archive.org/web/20180226032233/https://www.flightglobal.com/news/articles/bae-reveals-39airbus-uk39-proposal-64872/ |archive-date=26 February 2018 |url-status=live}}</ref>

Despite repeated suggestions as early as 2000 that BAE Systems wished to sell its 20% share of Airbus, the possibility was denied by the company.<ref name="scotsman2000"/><ref>{{Cite news |first=Peter |last=Spiegel |title=BAE denies Airbus sale plans |work=Financial Times |date=7 September 2005}}</ref> However, on 6 April 2006 it was reported that it was indeed to sell its stake, then "conservatively valued" at £2.4&nbsp;billion.<ref name="BBC Airbus">{{cite news |url=http://news.bbc.co.uk/1/hi/business/4886154.stm |title=BAE confirms possible Airbus sale |work=BBC News |date=7 April 2006 |access-date=12 August 2006 |archive-url=https://web.archive.org/web/20061120113320/http://news.bbc.co.uk/1/hi/business/4886154.stm |archive-date=20 November 2006 |url-status=live}}</ref> Due to the slow pace of informal negotiations, BAE Systems exercised its [[put option]] which saw investment bank [[N M Rothschild & Sons|Rothschild]] appointed to give an independent valuation. Six days after this process began, Airbus announced delays to the [[Airbus A380|A380]] with significant effects on the value of Airbus shares. On 2 June 2006 Rothschild valued the company's share at £1.87&nbsp;billion, well below its own analysts' and even EADS's expectations.<ref>{{Cite news |first=David |last=Gow |url= https://www.theguardian.com/business/2006/jul/03/theairlineindustry.baesystemsbusiness |title= BAE under pressure to hold Airbus stake |work= The Guardian |location= London |publisher= Guardian Newspapers |date= 3 July 2006 |access-date= 3 July 2006 |archive-url= https://web.archive.org/web/20131002154400/http://www.theguardian.com/business/2006/jul/03/theairlineindustry.baesystemsbusiness |archive-date= 2 October 2013 |url-status= live}}</ref> The BAE Systems board recommended that the company proceed with the sale. Shareholders voted in favour and the sale was completed on 13 October.<ref>{{Cite news |title= BAE Systems says completed sale of Airbus stake to EADS |work=Forbes |date= 13 October 2006 |url= https://www.forbes.com/feeds/afx/2006/10/13/afx3089453.html |access-date=13 October 2006 |url-status=dead|archive-url=https://web.archive.org/web/20110604072701/http://www.forbes.com/feeds/afx/2006/10/13/afx3089453.html|archive-date=4 June 2011}}</ref> This saw the end of UK-owned involvement in civil airliner production. Airbus Operations Ltd (the former Airbus UK) continued to be the Airbus "Centre of Excellence" for wing production, employing over 9,500 in 2007.<ref>{{cite web |url= http://www.airbus.com/en/worldwide/airbus_in_uk.html |title=Airbus in UK |work=Airbus |access-date=5 October 2007 |archive-url= https://web.archive.org/web/20071012161735/http://airbus.com/en/worldwide/airbus_in_uk.html |archive-date= 12 October 2007}}</ref>

===2010s===
In February 2010 BAE Systems announced a £592&nbsp;million [[writedown]] of the former Armor Holdings business following the loss of the [[Family of Medium Tactical Vehicles]] contract in 2009.<ref>{{cite web |title=BAE takes £600m hit on lost trucks contract |first=Gribben |last=Roland |newspaper=The Daily Telegraph|date=18 February 2010 |url=https://www.telegraph.co.uk/finance/newsbysector/industry/defence/7245301/BAE-takes-600m-hit-on-lost-trucks-contract.html |access-date=18 February 2010 |location=London |archive-url=https://web.archive.org/web/20100220023508/http://www.telegraph.co.uk/finance/newsbysector/industry/defence/7245301/BAE-takes-600m-hit-on-lost-trucks-contract.html |archive-date=20 February 2010 |url-status=live}}</ref> It was outbid by [[Oshkosh Corporation]] for the £2.3&nbsp;billion ($3.7&nbsp;billion) contract.<ref>{{cite web |title=BAE Systems left licking its wounds on Armor Holdings acquisition |first=David |last=Robertson |newspaper=[[The Times]] |date=15 October 2009 |url=https://www.thetimes.com/world/us-world/article/bae-systems-left-licking-its-wounds-on-armor-holdings-acquisition-qljf6njw6kd |access-date=12 October 2022 |location=London |archive-url=https://web.archive.org/web/20221012185028/https://www.thetimes.co.uk/article/bae-systems-left-licking-its-wounds-on-armor-holdings-acquisition-qljf6njw6kd/engineering/article6875365.ece |archive-date=12 October 2022 |url-status=live}}</ref> Land and Armaments had been the "star performer" of BAE Systems' subsidiaries, growing from sales of £482&nbsp;million in 2004 to £6.7&nbsp;billion in 2009.<ref name="prelim09">{{cite web |url=http://bae-systems-investor-relations-2009.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-2009/PDFs/results-and-reports/results/2010/BAE_2009_Prelim_results.pdf |title=Preliminary Announcement and Presentation 2009|date=18 February 2010 |publisher=BAE Systems |access-date=19 February 2010 |archive-url= https://web.archive.org/web/20100331132234/http://bae-systems-investor-relations-2009.production.investis.com/~/media/Files/B/BAE-Systems-Investor-Relations-2009/PDFs/results-and-reports/results/2010/BAE_2009_Prelim_results.pdf |archive-date= 31 March 2010 |url-status= live}}</ref><ref>{{cite web |title=The route ahead lies across rough terrain |first=Sylvia |last=Pfeifer |url=http://www.ft.com/cms/s/0/ff34c7c0-1cf5-11df-aef7-00144feab49a.html |archive-url=https://ghostarchive.org/archive/20221210/http://www.ft.com/cms/s/0/ff34c7c0-1cf5-11df-aef7-00144feab49a.html |archive-date=10 December 2022 |url-status=live |newspaper=Financial Times |date=19 February 2010 |access-date=22 February 2010 |url-access=registration}}</ref><ref name="findata"/>

BAE Systems inherited British Aerospace's 35% share of [[Saab AB]], with which it produced and marketed the [[JAS 39 Gripen|Gripen]] fighter aircraft. In 2005 it reduced this share to 20.5% and in March 2010 announced its intention to sell the remainder. ''The Times'' stated that the decision brought "to an end its controversial relationship with the Gripen fighter aircraft".<ref name="saabsale">{{cite web |title=BAE cuts links to Saab and ill-fated fighter |first=David |last=Robertson |url=http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7051389.ece |newspaper=[[The Times]] |date=5 March 2010 |access-date=19 March 2010 |location=London |archive-url=https://web.archive.org/web/20110611190843/http://business.timesonline.co.uk/tol/business/industry_sectors/engineering/article7051389.ece |archive-date=11 June 2011 |url-status=dead}}</ref> Several of the export campaigns for the aircraft were subject to allegations of bribery and corruption.<ref name="saabsale"/>

The company continued its move into support services in May 2010 with the purchase of the marine support company [[Atlantic Marine]] for $352&nbsp;million.<ref name="us2010"/> In September 2010 BAE Systems announced plans to sell the [[BAE Systems Platform Solutions|Platform Solutions]] division of BAE Systems Inc., which the ''Financial Times'' estimated could yield as much as £1.3&nbsp;billion. Despite "considerable expressions of interest", the sale was abandoned in January 2011.<ref name="us2010">{{Cite news |title=BAE prepares to streamline US business |first=Carola |last=Hoyos |newspaper=Financial Times |date=11 September 2010 |location=London}}</ref><ref name="platformdisposal">{{Cite news |title=BAE Drops Asset Sale Plan |first=Jon|last=Buck |newspaper=The Wall Street Journal|date=11 January 2011}}</ref> The purchases of {{sclass|Queen Elizabeth|aircraft carrier}}s, the ''Astute''-class submarines, and the [[Type 26 frigate]]s were all confirmed in the 2010 SDSR.<ref name="sdsr">{{cite web|date=19 October 2010|title=Securing Britain in an Age of Uncertainty: The Strategic Defence and Security Review|url=https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/62482/strategic-defence-security-review.pdf|access-date=30 December 2020|publisher=HM Government}}</ref> A new generation of nuclear missile submarines, the [[Dreadnought-class submarine|''Dreadnought'' class]], was ordered in 2016.<ref name=parliament-20180910>{{cite report |url=https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/1028/1028.pdf |title=Ministry of Defence nuclear programme |work=Committee of Public Accounts |publisher=UK Parliament |id=HC 1028 |date=10 September 2018 |access-date=21 September 2018 |archive-url=https://web.archive.org/web/20180922024818/https://publications.parliament.uk/pa/cm201719/cmselect/cmpubacc/1028/1028.pdf |archive-date=22 September 2018 |url-status=live}}</ref>

BAE Systems sold the regional aircraft leasing and asset management arm of its [[BAE Systems Regional Aircraft|Regional Aircraft]] business in May 2011. This unit leases the [[BAe 146]]/Avro RJ family, [[BAe ATP]], [[British Aerospace Jetstream|Jetstream]] and [[BAe 748]]. The company retained the support and engineering activities of the business.<ref>{{cite web |title=BAE Systems Sells Leasing Business, Regional Aircraft Portfolio |url=http://aviationweek.com/awin/bae-systems-sells-leasing-business-regional-aircraft-portfolio |newspaper=Aviation Week |date=27 May 2011 |access-date=31 January 2012 |archive-url=https://web.archive.org/web/20160807160533/http://aviationweek.com/awin/bae-systems-sells-leasing-business-regional-aircraft-portfolio |archive-date=7 August 2016 |url-status=live}}</ref> In September 2011, BAE Systems began consultation with unions and workers over plans to cut nearly 3,000 jobs, mostly in the company's military aircraft division.<ref>{{cite web |url=https://www.bbc.co.uk/news/uk-england-15088511 |title=BAE Systems job cuts: Consultation period due to start |date=28 September 2011 |work=BBC News |access-date=20 June 2018 |archive-url=https://web.archive.org/web/20160105021453/http://www.bbc.co.uk/news/uk-england-15088511 |archive-date=5 January 2016 |url-status=live}}</ref>

In its 2012 half-year report, the company revealed a 10% decline in revenue in the six months up to 30 June due to falling demand for armaments.<ref>{{cite web|url=http://www.armedforces-int.com/news/falling-armaments-demand-hits-bae-profits.html|title=Falling Armaments Demand Hits BAE Profits|publisher=Armed Forces International|date=2 August 2012<!--, 6:30&nbsp;am BST-->|access-date=2 August 2012|archive-url=https://web.archive.org/web/20120803231052/http://www.armedforces-int.com/news/falling-armaments-demand-hits-bae-profits.html|archive-date=3 August 2012|url-status=live}}</ref> In May 2012 the governments of the UK and Saudi Arabia reached an agreement on an arms package which saw a £1.6&nbsp;billion contract awarded to BAE for the delivery of 55 Pilatus PC-21 and 22 BAE Systems Hawk aircraft.<ref>{{cite web|title=Contract Awarded to Enhance Royal Saudi Air Force Training Capability|url=http://www.baesystems.com/article/BAES_048243/contract-awarded-to-enhance-royal-saudi-air-force-training-capability|publisher=BAE Systems|access-date=8 August 2012|archive-url=https://web.archive.org/web/20120610042807/http://www.baesystems.com/article/BAES_048243/contract-awarded-to-enhance-royal-saudi-air-force-training-capability|archive-date=10 June 2012|url-status=live}}</ref> The Sultanate of Oman ordered Typhoon and Hawk aircraft worth £2.5&nbsp;billion in December 2012.<ref>{{cite news |url=https://www.bbc.co.uk/news/business-20808517 |title=BAE Systems wins £2.5bn Oman Hawk and Typhoon contract |date=21 December 2012 |work=BBC News |archive-url=https://web.archive.org/web/20181118183540/https://www.bbc.co.uk/news/business-20808517 |archive-date=18 November 2018 |url-status=live}}</ref>

In September 2012, it was reported that BAE Systems and [[EADS]] had entered merger talks which would have seen BAE shareholders own 40% of the resulting organisation.<ref name="BBC092012-">{{cite news|title=BAE Systems shares shed gains after EADS merger talk|url=https://www.bbc.co.uk/news/business-19584078|access-date=13 September 2012|publisher=BBC|date=13 September 2012|archive-url=https://web.archive.org/web/20120913185650/http://www.bbc.co.uk/news/business-19584078|archive-date=13 September 2012|url-status=live}}</ref><ref name=Bloomberg092012>{{cite news|title=Boeing Says EADS Seeking U.S. Growth With BAE Merger|url=https://www.bloomberg.com/news/2012-09-13/boeing-says-eads-seeking-u-s-growth-with-bae-merger.html|publisher=Bloomberg|date=13 September 2012|first1=Jim|last1=Snyder|first2=Susanna|last2=Ray|url-status=dead|archive-url=https://web.archive.org/web/20141006205720/http://www.bloomberg.com/news/2012-09-13/boeing-says-eads-seeking-u-s-growth-with-bae-merger.html|archive-date=6 October 2014}}</ref> On 10 October 2012, the companies said the merger talks had been called off.<ref>{{cite web |title=BAE-EADS merger cancelled amid political impasse |url=https://www.bbc.co.uk/news/business-19897699 |newspaper=BBC |date=10 October 2012 |access-date=10 October 2012 |archive-url=https://web.archive.org/web/20121010185427/http://www.bbc.co.uk/news/business-19897699 |archive-date=10 October 2012 |url-status=live}}</ref> ''The Guardian'' reported that this was due to the German Government's concern about the "potential size of the French shareholding in the combined company, as well as disagreements over the location of the group's headquarters".<ref>{{cite news |last=Milmo |first=Dan |date=11 October 2012 |title=BAE-EADS: Angela Merkel blamed for collapse of £28bn merger |url=https://www.theguardian.com/business/2012/oct/10/angela-merkel-bae-eads-merger |work=theguardian.com |location=London |access-date=2 November 2018 |archive-url=https://web.archive.org/web/20190508110953/https://www.theguardian.com/business/2012/oct/10/angela-merkel-bae-eads-merger |archive-date=8 May 2019 |url-status=live}}</ref>

In November 2013, BAE Systems announced that shipbuilding would cease in Portsmouth in 2014 with the loss of 940 jobs, and a further 835 jobs would be lost at Filton, near Bristol, and at the shipyards in Govan, Rosyth, and Scotstoun in Scotland.<ref>{{cite news |url=http://descrier.co.uk/uk/2013/11/bae-cut-1775-shipbuilding-jobs/ |title=BAE to cut 1,775 shipbuilding jobs |work=Descrier |date=6 November 2013 |access-date=6 November 2013 |archive-url=https://web.archive.org/web/20131107030437/http://descrier.co.uk/uk/2013/11/bae-cut-1775-shipbuilding-jobs/ |archive-date=7 November 2013 |url-status=live}}</ref> On 9 October 2014, the company announced the loss of 440 management jobs across the country, with 286 of the job cuts in Lancashire.<ref>[https://www.bbc.co.uk/news/business-29550199 "BAE Systems set to cut 440 management jobs"]. {{Webarchive|url=https://web.archive.org/web/20190201054359/https://www.bbc.co.uk/news/business-29550199 |date=1 February 2019}} ''BBC News'', 9 October 2014.</ref><ref>[http://webarchive.loc.gov/all/20141016165238/http://www.defensenews.com/article/20141009/DEFREG01/310090047/BAE%2DCut%2D440%2DManagement%2DJobs "BAE To Cut 440 Management Jobs"]. ''Defense News'', 9 October 2014.</ref>

In July 2014 it announced the acquisition of US intelligence company Signal Innovations Group Inc. to augment imagery and data analysis technologies in its Intelligence & Security business.<ref>{{cite web|url=http://www.defensedaily.com/bae-acquires-signal-innovations-group-2/|title=BAE Acquires Signal Innovations Group|date=16 October 2014|publisher=Defense Daily|access-date=25 February 2018|archive-url=https://web.archive.org/web/20180225205937/http://www.defensedaily.com/bae-acquires-signal-innovations-group-2/|archive-date=25 February 2018|url-status=live}}</ref> In August 2014, BAE was awarded a £248&nbsp;million contract from the [[British government]] to build three new [[offshore patrol vessel]]s.<ref>{{cite web |date=21 August 2014 |title=BAE Systems wins 348 million pounds contract for new UK patrol ships |url=https://www.reuters.com/article/us-britain-bae-systems-idUSKBN0GB28D20140811 |url-status=live |archive-url=https://web.archive.org/web/20151017061110/http://www.reuters.com/article/2014/08/11/us-britain-bae-systems-idUSKBN0GB28D20140811 |archive-date=17 October 2015 |access-date=30 June 2017 |publisher=Reuters}}</ref> In October 2014, BAE Systems won a £600&nbsp;million contract from the MoD to maintain [[HMNB Portsmouth|Portsmouth naval base]] for five years.<ref>{{cite press release |publisher=Reuters |date=1 October 2014 |title=Babcock, BAE Systems win $5.2&nbsp;billion UK naval contracts |url=https://www.reuters.com/article/us-bae-systems-contract-idUSKCN0HQ3DV20141001|access-date=5 June 2021}}</ref> During 2014 BAE Systems acquired US-based cybersecurity firm Silversky for $232.5&nbsp;million.<ref>[https://www.reuters.com/article/2014/10/21/uk-silversky-m-a-bae-systems-idUSKCN0IA0KE20141021 BAE Systems to buy U.S. cyber security firm SilverSky for $232.5 million] {{Webarchive|url=https://web.archive.org/web/20151017061110/http://www.reuters.com/article/2014/10/21/uk-silversky-m-a-bae-systems-idUSKCN0IA0KE20141021 |date=17 October 2015}}. [[Reuters]], 21 October 2014</ref>

During Prime Minister [[Theresa May]]'s visit to Turkey in January 2017, BAE and [[Turkish Aerospace Industries|TAI]] officials signed an agreement, worth about £100 million, for BAE to provide assistance in developing the [[TAI TF Kaan]] aircraft.<ref name="reuters">{{cite news |url= http://uk.reuters.com/article/uk-britain-eu-turkey-bae-idUKKBN15C0IM |title= Britain, Turkey sign defence deal to develop Turkish fighter jet |work= Reuters |date= 27 January 2017 |access-date= 26 June 2017 |archive-url= https://web.archive.org/web/20170512154414/http://uk.reuters.com/article/uk-britain-eu-turkey-bae-idUKKBN15C0IM |archive-date= 12 May 2017 |url-status= dead}}</ref> On 10 October 2017, BAE announced that it would lay off nearly 2,000 out of its approximately 35,000 employees in Britain, mainly due to an order shortage for the Typhoon fighter.<ref name="veconomist"/>

In 2018, the company agreed a £5 billion with the government of Qatar for 24 Typhoon Eurofighters.<ref>{{Cite news |last=Pfeifer |first=Sylvia |date=2024-12-05 |title=Qatar looks to buy another 12 Typhoon jets from UK |url=https://www.ft.com/content/fd730e6e-de47-4aa6-8330-d64e505a77f3 |access-date=2024-12-09 |work=Financial Times}}</ref> 

In 2019 BAE Systems sold a 55% share of its UK land business to [[Rheinmetall]]. The resultant joint venture (JV), Rheinmetall BAE Systems Land (RBSL), was established in July 2019 following regulatory approval and is headquartered at the existing facility in Telford, Shropshire.<ref>{{cite news |last1=Chuter |first1=Andrew |last2=Sprenger |first2=Sebastian |date=1 July 2019 |title=Rheinmetall, BAE consummate armored-vehicles joint venture |url=https://www.defensenews.com/global/europe/2019/07/01/rheinmetall-bae-consummate-armored-vehicles-joint-venture/ |work=defensenews.com |access-date=2020-07-09}}</ref>

===2020s===
In August 2020 BAE Systems completed the purchase of [[United Technologies]]' military GPS businesses for $1.9 billion and [[Raytheon]]'s military airborne radios business for $275 million. The sale of these two business was a condition of the merger approval that saw their two parent companies merge to form [[Raytheon Technologies]].<ref>{{cite news |last=Keller |first=John |title=BAE Systems completes $1.9 billion buy of Raytheon's military Global Positioning System (GPS) business |url=https://www.militaryaerospace.com/sensors/article/14181742/gps-raytheon-bae-systems |work=Military & Aerospace Electronics |access-date=2020-12-31}}</ref>

In November 2020, the MoD announced the award of a 20-year, £2.4 billion munitions contract to BAE. This will see BAE manufacture 39 different munitions for the UK armed forces and supersedes the 2008 MASS contract.<ref>{{Cite web|last=Chuter|first=Andrew|date=30 November 2020|title=BAE Systems gets $3.2 billion deal so British forces can reload|url=https://www.defensenews.com/global/europe/2020/11/30/bae-systems-gets-32-billion-deal-so-british-forces-can-reload/|access-date=29 December 2020|website=Defense News}}</ref> In July 2023, BAE received a related £280 million order to address a munitions shortage caused by the supply of ammunition to Ukraine.<ref>{{Cite news |last1=Pfeifer |first1=Sylvia |last2=Gross |first2=Anna |date=11 July 2023 |title=Heavy artillery BAE Systems seals £280mn munitions deal |work=Financial Times}}</ref>

In 2022, during the [[Russian invasion of Ukraine]], major arms manufacturers, including BAE Systems,<ref>{{cite news |title=BAE Systems forecasts more growth on Ukraine conflict boost |url=https://www.reuters.com/business/aerospace-defense/bae-systems-earnings-rise-95-higher-military-spend-2023-02-23/ |work=Reuters |date=23 February 2023}}</ref> reported a sharp increase in interim sales and profits.<ref>{{cite news |title=Ukraine war: How weapons makers are profiting from the conflict |url=https://news.sky.com/story/ukraine-war-how-weapons-makers-are-profiting-from-the-conflict-12624574 |work=Sky News |date=10 June 2022}}</ref><ref>{{cite news |title=BAE Systems unveils record orders as Ukraine war bolsters military spending |url=https://www.independent.co.uk/business/bae-systems-unveils-record-orders-as-ukraine-war-bolsters-military-spending-b2287942.html |work=The Independent |date=23 February 2023}}</ref>

In August 2023 BAE agreed to acquire the [[Ball Aerospace & Technologies|aerospace division]] of US-based [[Ball Corporation]] for $5.6 billion in cash (approximately £4.5 billion); this was BAE's largest acquisition up until that point and was completed on 16 February 2024.<ref>{{Cite news |last=Shabong |first=Yadarisa |date=17 August 2023 |title=BAE snaps up Ball's aerospace arm for $5.6 billion in its biggest deal ever |url=https://www.reuters.com/markets/deals/uks-bae-systems-buy-ball-aerospace-about-555-bln-2023-08-17/ |work=Reuters}}</ref><ref>{{cite web|url=https://www.baesystems.com/en/article/bae-systems-completes-acquisition-of-ball-aerospace/|title=BAE Systems completes acquisition of Ball Aerospace|publisher=BAE Systems|access-date=14 October 2024}}</ref> In October 2023, BAE was awarded a £3.95 billion contract for development work on [[SSN-AUKUS|Aukus-class submarines]] up to 2028.<ref>{{Cite news |last=Hoskins |first=Peter |date=2 October 2023 |title=Aukus: UK defence giant BAE Systems wins £3.95bn submarine contract |work=BBC News |url=https://www.bbc.co.uk/news/business-66979798 |access-date=23 October 2023}}</ref>