International Opportunities Abound

In the Defence Online article, “International Opportunities Abound,” London attorneys Richard Tall, Hans Mehrens, Claire Nilson and Emily Evans provided an overview of how increases in government defence spending are likely to continue, particularly in areas such as autonomous vehicles, drones and cybersecurity. 

The authors write that, with geopolitical challenges arising at home and abroad, countries are increasingly cooperating on defence, creating more opportunities for contractors to conduct cross-border deals. The challenge for these contractors, they note, is that they must be ready to navigate complex laws on export controls, security, immigration, and cyber security. Further, while some governments may rely on domestic defence operators, increasing competition in the marketplace may lead to a better, more diverse range of services available to governments. 

“Whilst reliance on known operators in the defence sector can be desirable for governments due to security concerns overusing foreign vendors, competition is key to fostering innovation,” the authors write. “In turn, innovation in defence and aerospace is vital for governments, especially those in the U.S. and the U.K., to be able to maintain their global pre-eminence in the sector and for suppliers to be responsive to military needs. Increasing merger and acquisition movements, which we expect to see in the years to come, especially from mid-size firms who are attempting establish footholds in the U.S. market, will only compound these developments.”