The Albanese government has moved to acquire an ownership interest in the Canberra-based defence radar systems manufacturer, CEA Technologies, in a bid to keep the highly sought after technology in Australian hands.
The deal with the 40-year-old Fyshwick-based company with a 600-strong workforce is expected to lead to the creation of a new Government Business Enterprise (GBE) with the government citing CEA's "cutting-edge approach to designing and delivering essential defence capabilities".
The CEA board and management has welcomed the Commonwealth as a significant shareholder, saying it supports the company's direction and gives shareholders certainty and clarity. The commonwealth acquisition has also been welcomed by the opposition, which said the deal had started under the former Coalition Government.
The Defence Minister Richard Marles said the deal will guarantee that the capability of CEA, including critical radar systems, remains a national sovereign asset.
"CEA is one of the great products of Australian defence industry, and they make really the best phased array radar in the world," the Defence Minister Richard Marles told the ABC.
"And it's really because of that that we've taken this step.
"What we want to make sure of is that ... this is a company that exists or resides in Australian hands. And the best way of doing that is making sure that the government is able to purchase it."
The government has announced that, from July, the Commonwealth will hold a non-controlling shareholding in CEA for 18 months. CEA will then be majority owned by the Commonwealth and become a GBE, operating as an independent for-profit company.
"The commonwealth's staged investment in CEA, a longstanding and valued partner, strikes an appropriate balance between maintaining the capabilities and operational independence of CEA as a standalone company, and keeping Australians safe while achieving value for the taxpayer," Finance Minister and ACT senator Katy Gallagher said.
In a statement, the CEA board, management and staff said they were supportive of the ownership changes and "look forward to this new era of consolidated Australian shareholding and continuation of 'business as usual' for the company."
The company executive thanked the departing longstanding shareholder, large defence contractor Northrop Grumman.
The Coalition has welcomed the deal but it is seeking briefings and further information, including the cost and impact on the budget.
CEA is an Australian company which has been designing and manufacturing advanced technology radar and communications solutions since 1983. Headquartered in Fyshwick, it has offices around the country and a wholly-owned US subsidiary.
The deal comes just days after the release of the declassified 110-page version of the Albanese government-commissioned Defence Strategic Review.
Earlier this year CEA was awarded a $277 million Defence contract to provide advanced capabilities (fixed and portable emitters) for Australia's electronic warfare ranges, in the first contract to be awarded under Project Air 5349 Phase 6 - Advanced Growler.
