EADS, BAE call off merger
The companies said they had “decided to terminate their discussions” over the proposed $45 billion tie-up because of conflicting interests between the British, French and German governments.
“It has become clear that the interests of the parties’ government stakeholders cannot be adequately reconciled with each other or with the objectives that BAE Systems and EADS established for the merger,’’ the companies said in a statement.
The proposed merger between Britain’s BAE and Franco-German EADS, the parent of Airbus, would have created a company with a market value just shy of Boeing’s.
A number of concerns were instantly raised, including the scale and location of any job cuts. Questions were also raised about what the deal would do to the delicate balance that Germany and France have achieved in EADS after years of bickering.
“It’s not up to me to regret or rejoice,” French President Francois Hollande said. “The French state as shareholder made known a certain number of arguments, of conditions. Our German friends had a certain number of criteria that were important to them. The British did the same. And the companies came to their conclusion.’’
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