Australia to buy military radar company for $500-M

Australia to buy military radar company for $500-M

THE Australian government will spend nearly $500 million to take majority ownership of a Military Radar Company.

Acquiring ownership interest of Canberra-Based Defense Contractor (CEA) technologies secures a crucial sovereign capability for Australia’s Military.

Established in 1983, CEA Technologies is an Australian Defense Contractor that primarily supplies the Royal Australian Navy and provides Defense Radar Systems to the Australian Defense Force.

The new deal, announced on April 27, will allow the Commonwealth to gain a minority stake in the company starting in July.

The government will end up with the majority of the shares after 18 months.

At this point, CEA will become a government business enterprise.

According to Deputy Prime Minister Richard Marles, the plans would ensure the company was on the path to long-term growth and development while securing the supply of critical radar systems for the Australian Defense Forces.

The government announced the deal as Australia gets serious about securing its sovereign critical capabilities and plans for military upgrade within the next ten years.

Follow SMNI NEWS in Twitter