Following its privatisation, Thomson-CSF continued to orient itself towards the defense electronics sector, establishing itself in overseas nations, including South Africa, Australia, South Korea and Singapore. Shortly after its privatisation, the company began exploring the possibility of merging with British defense specialist Marconi Electronic Systems. Its ambitions were foiled by the success of a rival bid by the defense and aerospace firm British Aerospace, which rebranded itself as BAE Systems shortly thereafter. Keen to expand its defense and technology business, Thomson-CFS announced the acquisition of the British defence electronics company Racal Electronics, which was purchased in exchange for £1.3 billion. As a result of its takeover of Racal, the UK became Thomson-CSF's second-largest domestic industrial base after France. Racal was initially rebranded "Thomson-CSF Racal plc".