U.S. defense contracting powerhouse General Dynamics
This being an article about a British acquisition, I can only describe General Dynamics' choice as "brilliant!"
Alvis and General Dynamics already work closely together. Alvis manufactures Piranha II wheeled armored vehicles, under license from General Dynamics' MOWAG subsidiary, and is participating in the development of the next-generation Piranha IV.
For its part, General Dynamics manufactures the U.S. military's main battle tank, the Abrams, as well as its new wheeled armored vehicle, the Stryker (purchased recently from General Motors
Moreover, despite their collaboration on the Piranha, General Dynamics and Alvis are currently competitors. They sell to different customers in different countries -- customers who presumably force the two companies to compete for sales on price. Take away the competition -- and General Dynamics gets all the sales, with none of the price concessions. (Really, who else are customers going to buy their tanks from?)
Still, nation states, their citizens, and their companies all often disapprove of foreign companies buying up their means of self defense. Britain's BAE Systems
Moreover, there is no guarantee that the deal will go through even if BAE sells out. Britain's regulators will certainly scrutinize the deal carefully, and when they are done, the European Union's regulators will get a crack at it. (And, as Seth Jayson noted, EU regulators seem to take perverse pleasure in torturing American companies -- like Microsoft
One wonders if either the Abrams or the Challenger have armor thick enough to withstand a full frontal attack by the Eurocrats.
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Motley Fool contributor Rich Smith has no ownership interest in any of the companies mentioned in this article (but he thinks their products are way cool).