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 January 23, 2015

News: Two Marines identified in deadly California helo crash - Two Marine Corps officers killed when their helicopter crashed during a training exercise in the Southern California desert were remembered Jan. 25 as talented pilots. Greek F-16 crashes in Spain during NATO exercise - Ten people died Jan. 26 after a Greek air force F-16 jet crashed...
 
 

News Briefs January 26, 2015

Navy wants to increase use of sonar-emitting buoys The U.S. Navy is seeking permits to expand sonar and other training exercises off the Pacific Coast, a proposal raising concerns from animal advocates who say that more sonar-emitting buoys would harm whales. The Navy now wants to deploy up to 720 sonobuoys about 12 miles off...
 
 
Air National Guard photograph by SSgt. Annie Edwards

ANG conducts air refueling training with NATO allies in Germany

Air National Guard photograph by SSgt. Annie Edwards A NATO E-3A AWACS aircraft approaches a Utah Air National Guard KC-135R Stratotanker for air refueling during a training flight over Germany on Jan. 13, 2015. Nearly 30 airme...
 

 
Air Force photograph by SrA. Armando A. Schwier-Morales

Ramstein Airmen train with French air force

Air Force photograph by SrA. Armando A. Schwier-Morales Two U.S. Air Force pilots and a French air force navigator discuss the route to the drop zone during a simulated low-level drop Jan. 21, 2015, at Orleans – Bricy Air...
 
 

Marines receive first F-35C Lightning II carrier variant

The first F-35C Lightning II, carrier variant, for the U.S. Marine Corps touched-down on the flight line at Eglin Air Force Base, Fla., Jan. 13, from the Lockheed Martin plant in Fort Worth, Texas, to begin training in support of carrier-based operations. U.S. Marine Lt. Col. J.T. Ryan, Marine Fighter Attack Squadron 501 detachment commander...
 
 

VA announces single regional framework under MyVA initiative

The Department of Veterans Affairs announced Jan. 26 that it is taking the first steps under the MyVA initiative to realign its many organizational maps into one map with five regions to better serve Veterans. The new regions under the MyVA alignment will allow VA to begin the process of integrating disparate organizational boundaries into...
 




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=""> <strike> <strong>