BAE Systems and EADS Seek Merger

UK defence contractor BAE Systems plc and European aerospace firm and Airbus parent EADS NV have spoken to the London Stock Exchange about a “possible business combination”.
After partnering up for projects such as the Eurofighter and MBDA joint ventures, the two companies believe a merger would, “create a world-leading international aerospace, defence and security group, with substantial centres of manufacturing and technology excellence in the UK, USA, France, Germany and Spain, as well as in Australia, India and Saudi Arabia.”
They believe that combining the businesses would create opportunities for innovation, financial stability, and an extended market presence leading to more effective competitivity.
Any agreement will require approval by the companies’ board and would be subject to a number of governmental, regulatory and shareholder approvals.  A statement explained that, “there is no certainty at this stage that the discussions will ultimately lead to a transaction.”