EADS and BAE Systems have terminated discussions on the proposed €38 billion merger.
A proposed €38 billion merger between EADS and BAE Systems
was scrapped today because of the failure of governments to agree terms.
The two companies said that
they decided that it was “in the best interests of their companies and
shareholders to terminate the discussions”.
A merger between UK-based BAE
Systems and the Franco-German-Spanish defence and civil aerospace group,
EADS, which owns Airbus, would have created the world's biggest defence and
aerospace group, and a European giant to rival the US company Boeing.
In a statement, the two
companies said that it had “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 move follows several days
of talks between the governments of France, Germany and the UK. The UK, where
BAE Systems is based, wanted France and Germany to reduce their stakes in the
After the merger plan was
made public on 12 September, the US government was also reported to be
concerned about the extent of French and German government influence in the
Ian King, the chief executive of BAE
Systems, said: “We are obviously disappointed that we were unable to reach an
acceptable agreement with our various government stakeholders.”
Tom Enders, his counterpart at EADS, said: “It
is, of course, a pity we didn't succeed, but I'm glad we tried.”
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