BAE Systems and EADS terminate merger discussion

BAE Systems has released a statement saying that discussions, first announced on Sep 12, has been terminated. The companies said in a statement that" the interests of the parties' government stakeholders cannot be adequately reconciled with each other". The British and French governments in particular had trouble agreeing on the level of stake the French state should have in the new merger, according to several media reports. "BAE Systems and EADS believe that the merger was based on sound industrial logic. It represented a unique opportunity to create a combination from two strong and successful companies greater than the sum of the parts. The merger would have produced a combined business that would have been a technology leader and a greater force for competition and growth across both the commercial aerospace and defence sectors and which would have delivered tangible benefits to all stakeholders. Discussions with the relevant governments had not reached a point where both companies could fully disclose the benefits and detailed business case for this merger. BAE Systems and EADS are, however, confident that these would have provided a strong case to take to their shareholders," a statement on BAE Systems website said