A Takeover with a Difference

Here’s a takeover news item which is packed full of rich business studies material - and an interesting twist. BAE Systems plc has agreed to takeover an entire UK industry!

This article in The Times explains the background to, and details of BAE’s acquisition of a remaining stake in VT Group. VT is short for Vosper Thorneycroft, a long-standing name in UK shipbuilding and now the last remaining British shipbuilder of any size.

For VT Group, the disposal of its shipbuilding operations is a final move of its activities from the secondary sector to the tertiary sector. For BAE, the takeover is about backwards integration - they now control all aspects of ship construction - from the vessel to the electronics and weapons on board.