The deal makes industrial sense. It extends the UK defence group s armoured vehicles business into the US where spending is rising. If there's a snag, it is that BAe seems to have paid a high price for the business.
But the $5bn allshare offer was always a stretch. Moneylosing small companies tend to find obstacles when buying profitable bigger ones. Regulatory approval will not come before midMay. But by then the offer could loose the support of Norilsk, which owns 20% of Gold Fields. Regulatory approval won't come before May. By then Norilsk, the Russian miner which owns 20% of Gold Fields, may no longer support the bid.