BAE-EADS: Angela Merkel blamed for collapse of £28bn merger | Business | The ... - 0 views
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The proposed combination of Britain's largest defence contractor and the Franco-German owner of Airbus would have created a pan-European manufacturing powerhouse with 220,000 employees, making hi-tech products ranging from nuclear submarines and Typhoon fighter jets to the A380 superjumbo.
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"It [Merkel's opposition] was a key factor in the decision to terminate the talks," said the source. Another added that Merkel appeared to be "philosophically opposed" to combining a defence business with a civil aerospace company. "The fundamental problem is that Merkel does not feel comfortable with the deal, full stop."
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France, which controlled 15% of EADS directly, was unhappy with German demands for the business to have its headquarters in Munich, while Germany was concerned that France could end up with a bigger shareholding in the new business than the 9% it was seeking.The UK, in turn, refused to allow German and French political representatives to sit on the BAE board, as would have been likely under the dual-listed structure envisaged by both companies.
