Merger plan for BAE and Airbus manufacturer
The leading British defence contractor BAE Systems and pan-European plane maker EADS have confirmed that they are now in discussions about a possible merger of the businesses.
A statement from the companies said the potential combination would create a world leading international aerospace, defence and security group with substantial centres of manufacturing and technology excellence in the UK, USA, France, Germany and Spain, as well as in Australia, India and Saudi Arabia.
BAE and Airbus-maker EADS have a history of collaboration, and are currently partners in a number of important projects, including the Eurofighter. The two believe that their merger would offer benefits over and above their individual business strategies – in particular, the opportunity of greater innovation, long-term financial stability and an extended market presence.
The statement went on to say that an agreement to merge would require board, governmental, regulatory and shareholder approvals and there was no certainty that the discussions will ultimately lead to a transaction.
