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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