Europe's willingness to allow defence companies to be sold to American buyers faces a critical test through upcoming deals involving drone detection firms. Robin Radar Systems, a Dutch military supplier owned by private equity firm Parcom, is preparing a sales process targeting $2bn or more. Parcom is reportedly discouraging US arms makers from bidding due to expected government opposition, preferring a European strategic or private equity investor to avoid political intervention.

European government scrutiny in mergers and acquisitions is intensifying as Brussels and national governments seek greater influence in strategic sectors. The Dutch government recently blocked US firm Kyndryl's acquisition of cloud company Solvinity in May, marking the first US acquisition blocked by the Dutch Investment Screening Bureau since its 2020 founding. Senior deal advisers are now engaging earlier with governments and militaries to discuss sensitivities, offering guarantees on retaining jobs and technology locally.

Other assets on the block include Bridgepoint-owned Danish firm My Defence (valued around $1bn) and Polish company Advanced Protection Systems (APS), a key participant in Poland's anti-drone shield plans. APS was recently added to Poland's list of strategic companies, granting Warsaw blocking power. CEO Maciej Klemm stated the company is analyzing growth options. Surging interest in drones from conflicts in Ukraine and the Middle East drives valuations, but sellers risk losing deep-pocketed US bidders.