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.


 
 

 
atk-test

ATK successfully tests Orion launch abort motor igniter

NASA and ATK successfully completed a static test of the launch abort motor igniter for the Orion crew capsule’s Launch Abort System. Conducted at ATK’s facility in Promontory, Utah, this test is the next step towa...
 
 
uav-coalition

Small UAV coalition launched to advance commercial use of unmanned aerial vehicles

Leading technology companies Oct. 1 formally announced the formation of the Small UAV Coalition to help pave the way for commercial, philanthropic, and civil use of small unmanned aerial vehicles in the United States and abroad...
 
 

Northrop Grumman hand held precision targeting device completes successful developmental test

A new hand held targeting system developed by Northrop Grumman that will enable soldiers to engage targets with precision munitions while providing digital connectivity to related military units has successfully completed developmental testing at White Sands Missile Range in New Mexico. The evaluation of the company’s Hand Held Precision Targeting Device, or HHPTD, was conducted...
 

 

China’s first New-Generation Boeing Jetliner B747-8 delivered to Air China

In the evening of Sept. 29 29 in Seattle, Beijing time, Air China and Boeing held a grand aircraft delivery ceremony in Seattle, the United States, marking the official delivery of China’s first B747-8 to Air China. The type is a member of the latest generation B747 family. It will arrive at Beijing Capital International...
 
 

Raytheon awarded $251 million Tomahawk missile contract

The U.S. Navy has awarded Raytheon a $251 million contract to procure Tomahawk Block IV tactical cruise missiles for fiscal year 2014 with an option for 2015. The contract calls for Raytheon to build and deliver Tomahawk Block IV cruise missiles to the U.S. Navy and U.K. Royal Navy. Raytheon will also conduct flight tests...
 
 
Raytheon photograph

Poland’s TELDAT, Raytheon partner to develop new Patriot router

Raytheon photograph TELDAT President and CEO Henryk Kruszynski and Daniel J Crowley, president, Raytheon Integrated Defense Systems. Raytheon is partnering with TELDAT to develop and produce advanced militarized routers for the...
 




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>