BAE merger cancelled
BAE Systems’ ambitious plans to merge with the European Aeronautic Defence and Space Company (EADS) to create a world class international group capable of winning major US contracts have been cancelled.
The proposals were always set to be subject to government approval due to the size and nature of both businesses, but talks between the UK government, representing BAE, and the French and German governments, representing EADS, made little progress ahead of today's 5pm deadline,
EADS has more than 133,000 employees in 170 locations around the world and BAE has more than 93,000 employees. BAE has major bases in Warton and Samlesbury and employs 11,000 in the county.
As well as the need to ensure jobs, the British government also had concerns over the sharing of information with other countries.
In fact, it was believed that the US government would reduce the company's security rating, not only stifling BAE's plans to secure bigger and more high value defence contracts but also, in turn, hindering its current contracts.