STE's proposed acquisition of Cubic a leg up for smart city ambitions

Singapore

ST ENGINEERING'S (STE) proposed acquisition of New York-listed defence and transport company Cubic Corporation is likely to create synergies, analysts said. But further details are needed to determine if it is a good deal.

"From our point of view, it's quite synergistic with (STE's) operations; it really extends their presence in the developed markets, such as North America and in the UK," said Jason Sum, equity research analyst at DBS Group Research, adding that it also expands STE's presence in smart mobility.