Wednesday, October 10, 2012

BAE-EADS abandon merger


Posted by Neelam Mathews
Oct 10, 2012

British defense company  BAE Systems and EADS have abandoned their merger discussions, the companies announced today, blaming the inability of the European governments involved to agree to a deal.

“Notwithstanding a great deal of constructive and professional engagement with the respective governments over recent weeks, it has become clear that the interests of the parties’ government stakeholders cannot be adequately reconciled with each other or with the objectives that BAE Systems and EADS established for the merger,” the companies said. “BAE Systems and EADS have therefore decided it is in the best interests of their companies and shareholders to terminate the discussions and to continue to focus on delivering their respective strategies,” said the statement.
Ian King, Chief Executive of BAE Systems, today said: "We are obviously disappointed that we were unable to reach an acceptable agreement with our various government stakeholders.  We believe the merger presented a unique opportunity for BAE Systems and EADS to combine two world class and complementary businesses to create a world leading aerospace, defense and security group.


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