MoD completes sale of QinetiQ stake

The privatisation of defence-technology firm QinetiQ has been completed.

The Ministry of Defence (MoD) sold its remaining 19 percent stake in QinetiQ, previously the UK's Defence Evaluation and Research Agency, on Tuesday, raising £254m for the taxpayer.

The sale completes a contentious deal that saw the taxpayer lose out on almost £100m, according to parliamentary watchdog the Public Accounts Committee.

The minister for defence equipment and support, Baroness Taylor, said the privatisation has transformed a struggling agency into a successful company that employs 13,000 people, raising £830m for the UK taxpayer during the MoD's ownership of the company.

She said in a statement: "QinetiQ and its staff can be rightly proud of what the company has achieved since it was created in 2001. They remain a very important supplier to the MoD, and we wish them every success."

Taylor said that, although the MoD no longer has a financial stake in QinetiQ, it will retain a special share in the company, to protect the UK's defence and security interests.