UK defence giant in US corruption probe

Defence giant BAE Systems said today it is under investigation by the US Department of Justice amid allegations over arms deal payments with Saudi Arabia.

The UK company confirmed the US inquiry was launched after mounting speculation it was to face an inquiry in America.

It said the investigation related to its compliance with anti-corruption laws, “including the company’s business concerning the Kingdom of Saudi Arabia”.

The news comes just days after BAE was given approval by US regulators to go ahead with a £2 bin (€2.97bn) takeover of an American military company.