Dycom to pay £1bn for assets of Dyson, BAE Systems

The UK’s biggest carmaker will pay £650m ($1.1bn) to the parent company of UK-based Dyson to settle its debts over its investments in US-based aerospace giant BAE systems. 

Dycom, which is owned by Chinese state-owned conglomerate Sinopec, is one of the world’s biggest automotive manufacturers and a major shareholder in Airbus, among other companies. 

It said on Friday it had agreed to pay a £1.2bn (£1.05bn) settlement to resolve “significant claims” and agreed to take an immediate $300m (£186m) hit from future earnings.

Dyco had previously admitted that it had been negligent in its investments, and paid a $1.6bn (£738m) fine for the failings. 

The agreement includes an agreement to pay up to $7bn (£5.7bn) in compensation to shareholders and is subject to further approval from the US Securities and Exchange Commission (SEC). 

Dyson, which employs 2,000 people in the UK, has also agreed to buy back its remaining shares in BAE and is also paying an $8.8bn (£6.4bn) buyback plan to the US aerospace giant to offset the losses it has suffered as a result of the scandal. 

In the US, the US government is investigating the $8bn buyback plans as part of a criminal investigation.

In a statement, Dyco said the settlement with the US Department of Justice was an important step towards restoring trust in the future. 

“The US Department is committed to bringing to justice individuals responsible for the events that led to the collapse of Dycom,” it said. 

Boeing’s stock price has fallen by over 60% since the scandal broke in November and it has lost $7.5bn since January, after the US Justice Department launched its probe. (AP)