In 1928 Vickers Ltd merged with the greater part of the company Armstrong-Whitworth of Newcastle to form Vickers-Armstrongs Ltd. The two companies had developed along similar lines, expanded into various military sectors and produced a whole suite of military products. In 1928 a merger of companies in the steel industry was announced, involving parts of Vickers, Vickers-Armstrongs and Cammell, Laird and Co to form the English Steel Corporation.

Vickers-Armstrongs was involved heavily in the rearmament programme in the lead up to the Second World War, during which time the company played the major role in rearming the British Army. During the war the company moved its head office to Bathwick Hill, Bath, the head office returned to Westminster in 1945, remaining there until moving to Millbank Tower in 1963. After the war the company had four main areas of manufacture: aircraft, steel, shipbuilding and general engineering. Post-war, Vickers was responsible for the production of the first British nuclear submarine, the first British V-bomber and the Viscount and VC10 airliners.

In 1960 the aircraft interests were merged with those of Bristol, English Electric and Hunting Aircraft to form the British Aircraft Corporation (BAC). This was owned by Vickers, English Electric and Bristol. Under the terms of the 1977 Aircraft and Shipbuilding Industries Act BAC was nationalised to become part of British Aerospace which was later privatised and became BAE Systems.