BAE Systems and EADS in talks over merger
UK defence contractor BAE Systems has said that it is in talks with European aerospace firm EADS over a possible merger.
“Both companies would operate as one group by means of equalisation and other agreements but would be separately listed on their existing exchanges,” BAE said in a statement.
In a potential tie-up, BAE would own 40% and EADS 60% of the new firm.
Speculation that talks were ongoing sent BAE shares up 8% on Wednesday.
BAE and EADS said that a merger “offers the prospect of significant benefits for customers and shareholders of both companies”.
EADS, which is a consortium of aerospace and defence manufacturers from France, Germany and Spain, owns the planemaker Airbus.
On Wednesday, shares in EADS dropped 5.6%.
“Given the nature of the companies’ activities we would of course want to ensure that the UK’s public interest was properly protected,” a UK government spokesperson said.
“We are working with the companies to ensure that this is the case. Given the market sensitive nature of transactions of this sort we would not want to comment further at this stage.”
more centralization..its happening everywhere..