Govt acquires ownership interest in CEA Technologies

The Australian Government has entered into an agreement to acquire an ownership interest in Australian defence radar systems manufacturer CEA Technologies — a deal which will ultimately create a new Government Business Enterprise (GBE).

CEA is an Australian company with 600 staff, headquartered in Canberra and with offices around the country and a wholly owned US subsidiary. For the past 40 years, the company has developed leading radar systems that enable a range of critical Defence Force capabilities both in Australia and overseas.

The new agreement is set to advance the longstanding partnership between the Commonwealth and CEA, which should ensure the continued development of Australia’s radar capability in an increasingly complex strategic environment. It also secures the long-term ownership arrangements of CEA, which will allow the company to continue on its path to grow and develop the suite of products and services it provides with an acute focus on sovereign defence capability.

“Today’s landmark agreement secures the longevity of this Australian company and guarantees supply of critical radar systems for the ADF, now and into the future,” said Deputy Prime Minister Richard Marles.

“The approach the Commonwealth has taken, in partnership with existing shareholders, will ensure CEA is on the path to grow and develop over the long term, in order to meet the ongoing needs of Australia and its international partners.”

From July 2023, the Commonwealth will hold a non-controlling shareholding in CEA for 18 months. After that time, CEA will be majority owned by the Commonwealth and become a GBE, with the Minister for Defence and Minister for Finance acting as joint shareholder ministers with responsibility for overseeing the Commonwealth’s investment in CEA.

It is expected that as a GBE, CEA will continue to participate in the defence industry and pursue commercial, including export, opportunities. It will continue to operate as an independent for-profit company at arm’s length from the government, with the acquisition set to have no impact on procurement decisions by the Department of Defence.

“CEA is an Australian manufacturing powerhouse, with world-leading know-how and decades of industry experience that has led to the design and development of cutting-edge radar systems,” said Minister for Defence Industry Pat Conroy.

“CEA provides critical capabilities for a number of our major naval surface combatants, amongst other projects, and plays a vital role in our national security.

“The phased array radar capabilities within CEA are a critical sovereign capability, and today’s agreement protects the incredible capability of the CEA workforce and their unmatched ability in the field of radar technologies.”