BAE Systems is preparing to sell its Atlas Electronics business. This strategic move is thought to be a step towards focussing on the US market rather than Europe following their recent acquisition of United Defense Industries. Atlas, one of the German submarine industries largest suppliers, is rumoured to fetch in the region of €290m - €370m.

Sources have said that companies rumoured to be interested in the business include EADS, Thales and L-3 Communications, along with private equity form Carlyle.

Due to French and German restrictions on foreign companies entering their defence markets BAE sees these as virtually closed markets. A spokesman for BAE said: "We are exploring our options with Atlas. We are not turning our backs on Europe, but there are more opportunities in the US."

source: Bae

With acknowledgements to ASD Network and Bae.