Aircraft
Defense Issues Seem No Barrier To EADS Merger with BAE
EADS and BAE already cooperate in the Eurofighter Typhoon program but their planned merger would create a European defense group to rival their main U.S. competitor Boeing.
EADS and BAE already cooperate in the Eurofighter Typhoon program but their planned merger would create a European defense group to rival their main U.S. competitor Boeing.

At first glance, the proposed merger between EADS and BAE should not pose problems for competition regulators on either side of the Atlantic, from a defense perspective. There is very little overlap between the businesses. “It’s a great strategic fit,” one EADS official told AIN. However, that may not stop companies such as Finmeccanica or Thales from raising questions about the consolidation of first-tier defense contractors in Europe. “But we all know there has to be a consolidation; there’s not enough budget money to go round any more,” another EADS official told AIN. EADS shareholders will hold 60 percent of the equity in the combined group, with BAE having the remaining 40 percent.