BAE Systems, EADS call off planned merger that would have created aerospace giant

British defense contractor BAE Systems PLC and its European counterpart…

British defense contractor BAE Systems PLC and its European counterpart EADS NV on Wednesday abandoned a proposed merger that would have created a global defense and aerospace giant.

The companies said they “decided to terminate their discussions” over the proposed merger 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 with EADS, the parent of Airbus, would have created a global aerospace and defense company that would leapfrog U.S.-based Boeing Co.

Read more at The Washington Post

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