Business

October 9, 2012

United Kingdom threatens to veto BAE-EADS merger

The French and German governments must reduce their stakes in defense company EADS NV for the United Kingdom to allow a proposed merger with BAE Systems PLC to go ahead, Britain’s defense secretary warned Oct. 7.

Philip Hammond said Britain would veto the mega-merger of the aeronautics and defense companies if this requirement wasn’t satisfied.

ìIt is not, I think, necessary to have no French or German government interest in the company,î Hammond told the BBC in an interview. ìIt is necessary to reduce that stake below the level at which it can control or direct the way the company acts.î
The deal would create a global aerospace and defense company with combined sales of more than $90.3 billion and more than 220,000 employees.

ìWe want to see this company prospering as a commercial business focused on doing the things that are right for the business, not being beholden to or controlled by any one government,î Hammond added.

EADS, the parent of aircraft maker Airbus, is jointly French and German owned, though it is incorporated in the Netherlands.
The French government owns 15 percent and French media company Lagardere has 7.5 percent. Germany’s government does not have direct stakes in EADS, but has influence through auto maker Daimler, which holds a 22.5 percent stake.

The firms have until Oct. 10 to say whether they want to continue with the talks.

Oct. 5, 45 British lawmakers wrote to Prime Minister David Cameron, warning that the proposed merger would hand control of much of the British defense industry to a company that would not safeguard the country’s interests.

EADS, one of Europe’s biggest companies, is also parent to helicopter maker Eurocopter, satellite builder Astrium and defense electronics contractor Cassidian.

The proposed merger is fraught with difficulties, not least because France and Germany have been fighting for an equal say in EADS.

Airbus and EADS have long been rivals to U.S.-based Boein in civil and defense aviation. The proposed deal is a clear shot at catching up to Boeing’s defense business – and passing it. AP




All of this week's top headlines to your email every Friday.


 
 

 

Headlines July 7, 2015

News: F-35 loses dogfight to fighter jet from 1980s – A new report alleges that an F-35A was defeated by the very aircraft it is meant to replace.   Business: South Korea selects Airbus for $1.33 billion tanker contract – European aerospace giant Airbus won a $1.33 billion deal June 30 to supply air refueling...
 
 
U.S. Chamber of Commerce photograph

Boeing, Embraer to collaborate on ecoDemonstrator technology tests

U.S. Chamber of Commerce photograph Frederico Curado, president & CEO of Embraer, and Marc Allen, president of Boeing International, at the Brazil-U.S. Business Summit in Washington, D.C. The event occurred during an offici...
 
 
Untitled-2

Tactical reconnaissance vehicle project eyes hoverbike for defense

The U.S. Army Research Laboratory, or ARL, has been exploring the tactical reconnaissance vehicle, or TRV, concept for nearly nine months and is evaluating the hoverbike technology as a way to get Soldiers away from ground thre...
 

 
Air Force photograph by SSgt. William Banton

Upgraded AWACS platform tested at Northern Edge

Air Force photograph by SSgt. William Banton Maintenance crew members prepare an E-3G Sentry (AWACS) for takeoff during exercise Northern Edge June 25, 2015. Roughly 6,000 airmen, soldiers, sailors, Marines and Coast Guardsmen ...
 
 
LM-Legion

Lockheed Martin’s Legion Pod™ takes to skies

Lockheed Martin photograph by Randy Crites Lockheed Martin’s Legion Pod recently completed its first flight test, successfully tracking multiple airborne targets while flying on an F-16 in Fort Worth, Texas. Legion Pod was in...
 
 
Air Force photograph by SSgt. Marleah Robertson

First Marine graduates Air Force’s F-35 intelligence course

Air Force photograph by SSgt. Marleah Robertson Marine Corps 1st Lt. Samuel Winsted, an F-35B Lightning II intelligence officer, provides a mock intelligence briefing to two instructors during the F-35 Intelligence Formal Train...
 




0 Comments


Be the first to comment!


Leave a Reply

Your email address will not be published. Required fields are marked *

You may use these HTML tags and attributes: <a href="" title=""> <abbr title=""> <acronym title=""> <b> <blockquote cite=""> <cite> <code> <del datetime=""> <em> <i> <q cite=""> <s> <strike> <strong>