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.


 
 

 
boeing-ana2

Boeing announces ANA’s commitment to more jetliners

Airline continues fleet modernization with Boeing airplanes Boeing and All Nippon Airways announced Jan. 30 the airline’s intent to purchase three 787-10 Dreamliners to add additional flexibility to the airline’s 787 fleet....
 
 

Demand for airplanes lifts Boeing’s 4Q profit

Boeing’s fourth-quarter profit rose 19 percent as demand for commercial airliners trumped weakness in its defense business. Investors looked past a muted outlook for 2015 earnings and sent the shares to a 52-week high Jan. 28. Chicago-based Boeing and European rival Airbus have prospered as airlines around the world have gone on a shopping spree,...
 
 

Boeing wins $51 million contract to sustain ICBM guidance system

HUNTINGTON BEACH, Calif. – Boeing will provide sustaining engineering support for the guidance system of the Minuteman III intercontinental ballistic missile for the U.S. Air Force, ensuring the safety, security and effectiveness of the nation’s land-based nuclear deterrent, under a recently-awarded $51 million contract. “Since 1958, Boeing has stood alongside the U.S. Air Force to...
 

 

Orbital stockholders approve merger with ATK’s aerospace, defense groups

Orbital Sciences Corporation announced Jan. 27 that at a special meeting, the company’s stockholders voted overwhelmingly to approve the proposed merger with the Aerospace and Defense Groups of Alliant Techsystems Inc., pursuant to the definitive transaction agreement dated April 28, 2014. Approximately 99 percent of the votes cast at the special meeting voted in favor...
 
 

Northrop Grumman, MDA successfully complete command cyber readiness inspection

Northrop Grumman provided invaluable assistance for the U.S. Missile Defense Agency’s Excellent rating from the Command Cyber Readiness Inspection conducted on the Missile Defense Integration and Operations Center networks at Schriever Air Force Base, Colo. The CCRI evaluates a site’s compliance with information assurance and network defense policies and configuration standards for ...
 
 

Raytheon acquires Tucson-based Sensintel, Inc.

Raytheon has acquired privately-held Sensintel, Inc., a leading provider of unmanned aircraft systems solutions to the intelligence and special operations markets. Located in Tucson, Ariz., with approximately 50 employees, Sensintel will become part of Raytheon Company’s Missile Systems business. The transaction is not expected to materially impact Raytheon’s sales or earnings in th...
 




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>