European governments are increasingly scrutinizing foreign investments in their defence sectors as a series of planned sales of drone-detection companies signal a growing push to preserve strategic autonomy from the United States. The upcoming transactions, including the potential sale of Dutch firm Robin Radar Systems, are expected to test the region’s tolerance for US acquisitions amid rising concerns over national security and industrial sovereignty.
Robin Radar, which supplies technology to the Dutch military, is owned by private equity firm Parcom. Sources familiar with the matter indicated that Parcom is discouraging bids from US defence contractors due to anticipated resistance from local regulators. The seller is aiming to command upwards of $2 billion and is said to favor European strategic or private equity investors to mitigate the risk of intervention by Dutch authorities.
This development reflects a broader trend across Europe where regulatory bodies and governments are exercising tighter control over mergers and acquisitions in critical sectors including defence, technology, and energy. Deal advisors report that engagement with government officials and military authorities is occurring at earlier stages than in the past, with sellers and buyers often providing assurances on maintaining local jobs and safeguarding sensitive technologies to expedite or avoid drawn-out foreign direct investment (FDI) reviews.
The Netherlands notably prevented a US acquisition earlier this year when it blocked Kyndryl’s takeover of Solvinity, a cloud services fir connected to the country’s digital identification infrastructure. This marked the first such intervention by the Dutch Investment Screening Bureau since its establishment in 2020, underscoring the government’s heightened vigilance.
Industry experts highlight that the new European stance aims to keep defence production and innovation closely tied to the continent. “The mandate from European governments is becoming clearer: build it here, keep it here,” said Diana Dimitrova, head of BCG’s UK aerospace and defence practice. She noted that these concerns extend beyond defence alone to encompass jobs, supply chains, and control over Europe’s broader industrial base.
Several defence technology start-ups have expressed a preference to transact only with European buyers to avoid losing critical government contracts. However, one industry source cautioned that restricting sales to European investors could be challenging, as sellers often seek valuations aligned with US market standards, which are typically higher.
Alongside Robin Radar, other European defence companies are preparing for potential sales that could further test regulatory limits on US ownership. UK-listed private equity firm Bridgepoint is reportedly moving forward with the sale of Danish drone-detection and jamming firm MyDefence, estimated at around $1 billion. Meanwhile, Polish anti-drone company Advanced Protection Systems (APS) is undergoing a strategic review that may lead to a sale. APS plays a significant role in Poland’s efforts to develop one of Europe’s largest anti-drone shields following Russian airspace violations near NATO territories. Poland has recently classified APS as a strategic entity, granting authorities the power to block any ownership changes.
The unfolding transactions illustrate the growing complexity for investors as European nations strive to balance open markets with safeguarding their defence capabilities amid evolving geopolitical tensions.