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.


 
 

 

Northrop Grumman sets new greenhouse gas emission reduction goal of 30 percent by 2020

Northrop Grumman announced April 22 its commitment to reduce greenhouse gas emissions by 30 percent from 2010 levels by 2020, as part of its commemoration of Earth Day.   “Northrop Grumman is dedicated to top performance in environmental sustainability,” said Wes Bush, chairman, chief executive officer and president. “This new goal sets the bar significantly...
 
 

Lockheed Martin demonstrates enhanced ground control system, software for small UAV

Lockheed Martin’s Group 1 family of unmanned aircraft systems is migrating to enhanced automation capabilities using its Kestrelô “Fly Light” flight control systems and industry-leading mobile Ground Control Station software. The increased automation allows operators to focus on executing the mission, rather than flying various aircraft. Earlier this year, Lockheed MartinR...
 
 

U.S. Navy awards General Dynamics $33 million to operate, maintain military sealift ships

The U.S. Navy has awarded General Dynamics American Overseas Marine LLC a $32.7 million contract modification to operate and maintain seven large, medium-speed, roll-on / roll-off ships for the Military Sealift Command. AMSEA is a wholly owned subsidiary of General Dynamics. Under the terms of the modification, AMSEA will provide services including crewing, engineering, maintenance,...
 

 

US Navy deploys Standard Missile-3 Block IB for first time

In partnership with the Missile Defense Agency, the U.S. Navy deployed the second-generation Standard Missile-3 Block IB made by Raytheon for the first time, initiating the second phase of the Phased Adaptive Approach. “The SM-3 Block IB’s completion of initial operational testing last year set the stage for a rapid deployment to theater,” said Dr....
 
 

International customer signs agreement for Raytheon’s TOW missiles

An international customer signed an agreement with the U.S. government for a foreign military sale of tube-launched, optically tracked, wireless-guided (TOW) missiles to be supplied by Raytheon in a deal valued at approximately $750 million. Raytheon plans to deliver nearly 14,000 TOW missiles to the customer over a three-year period beginning in 2015. A resulting...
 
 

General Dynamics opens new radio testing lab for MUOS satellite-ground station communications

General Dynamics C4 Systems has opened the MUOS Radio Testing Lab at its Scottsdale, Ariz., location. The U.S. Navy-approved laboratory is one of two that supports testing for radio-terminals intending to connect with the MUOS space-ground network. The lab is equipped with hardware and software that simulates the radio’s connectivity with the MUOS ground network....
 




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>