BAE Systems sold H&K to a group of German business men from 2004-5, after the SA80-A2 project was finished.
However, H&K run/rent the Nottingham Small Arms Factory (formerly BAe - not BAE's Royal Ordnance- Factory Nottingham), and make rifles, carbines, SMGs. As of 2009, the factory definitely didn't make pistols, that being run by one of H&K's German factories. (About 75% of H&K's civilian pistol manufacture takes place in H&K's US factory, unsurprisingly). The factory makes a fair bit - that which isn't needed by the UK is exported elsewhere.
Even if the NSAF did make pistols, it wouldn't be cost efficient to buy them - the fact remains, H&K's pistols are expensive. Add in to the fact that they'd been made in the UK, and the cost would have gone up by about 2/3s.
As for BAE Systems making a deal... The company has earned it's nickname "Big, Awful, Expensive" for a reason :lol: You're far more likely to see MTP come out in luminous pink than see BAE sell kit to the UK Gov for a realistic price.