BAE Systems undertakings review

The CMA reviewed the undertakings given by BAE Systems plc following its merger with Marconi Electronic Systems in 1999.

• From: Competition and Markets Authority
• Published: 29 July 2016
• Last updated: 22 June 2017 — See all updates

• Case type: Reviews of orders and undertakings
• Case state: Closed
• Market sector: Defence
• Opened: 29 July 2016
• Closed: 22 June 2017

Administrative timetable

Date	Action
22 June 2017	Publish final advice
10 March 2017	Publish provisional advice
Autumn 2016	Hearings with interested parties
Summer 2016	Consideration of initial evidence gathering and main party submissions
29 July 2016	Review launched and initial request for evidence

Contact

baesreview@cma.gsi.gov.uk

Final advice to release undertakings

22 June 2017: The CMA has now concluded its review and provided, on 12 May 2017, a recommendation to the Secretary of State that BAES should be released from these long-standing undertakings.

• Final advice (22.6.17)
• News story: CMA recommends release of BAES from long-standing undertakings (22.6.17)

Provisional advice to release undertakings

The CMA provisionally considers that BAES should be released from long-standing undertakings as they are no longer appropriate. We will now consult before sending our final advice to BEIS in the spring. The consultation on our provisional advice closes on Monday 27 March 2017.

• Provisional advice (10.3.17)
• News story: CMA consults on provisional advice to release BAES undertakings (10.3.17)

Hearing summaries

As part of its evidence-gathering process, the CMA is holding formal hearings with a range of industry participants and interested parties.

• Ministry of Defence (3.1.17)
• BAE Systems (3.1.17)

Review group appointed

4 August 2016: The CMA has appointed the group for the review of the undertakings.

John Wotton (Inquiry Chair), Ros Hedley-Miller, and Jayne Scott.

Decision to undertake review

29 July 2016: The Competition and Markets Authority (CMA) has decided to carry out a review of the undertakings given by British Aerospace plc, now BAE Systems plc (BAES) arising from its acquisition of the Marconi Electronic Systems business of General Electric Company plc on 29 November 1999.

The undertakings included measures to safeguard competition and to address national security concerns arising in the defence sector. The undertakings date back to 1999 and the CMA will review if they remain fit for purpose and examine whether there has been a change in circumstances. The CMA will recommend to the Secretary of State at the Department for Business, Energy and Industrial Strategy (BEIS) whether the 2 undertakings in place should be retained, varied or released.

• Decision statement (29.7.16)
• Call for evidence (29.7.16)
• News story: CMA to review BAE Systems undertakings (29.7.16)

Published 29 July 2016
Last updated 22 June 2017 + show all updates

1. 22 June 2017

   Final advice published.

2. 10 March 2017

   Provisional advice published.

3. 3 January 2017

   Hearing summaries published.

4. 4 August 2016

   Review group appointments added.

5. 29 July 2016

   First published.