Airbus-parent EADS and BAE Systems are in talks over a merger that would create a global giant in the aerospace and defence industries.
The two companies confirmed the merger talks in a joint statement yesterday, outlining a deal in which UK-based BAE would own 40 per cent of the new company with EADS owning a majority 60-per cent stake.
“The potential combination would create a world class international aerospace, defence and security group with substantial centre of manufacturing and technology excellence in France, Germany, Spain, the UK and the USA,” the statement said.
Under the proposed merger, which remains subject to board and shareholder approvals, special “golden shares” would be issued to the governments of France, Germany and the UK, replacing Britain’s stake in BAE and the current Franco-German stakeholder arrangement in EADS.
BAE and EADS would remain separately listed entities but would operate as one group under a dual listed company structure, the statement said.
The two companies have collaborated on a number of project, including the Eurofighter and MBDA missile system.
