10 Oct 2012

BAE/EADS merger deadline today

Officials have until 5pm today (10 October) to reach a deal regarding the merger between BAE Systems and EADS.

It is believed that an extension to the deadline is being sought on the £28 billion deal which will create the world’s largest defence and aerospace organisation, as politics between the UK, France and Germany have slowed the decision process considerably.

The UK government has made it clear that British jobs must be protected in any merger deal, and UK Defence Secretary Philip Hammond has also stipulated that France and Germany must limit their influence in the newly created firm in order to maintain BAE’s strong working relations with the Pentagon.

This proposed limiting of power has been a major sticking point in the talks, particularly with the German government, and some analysts have deemed the merger ‘close to collapse’ as a result.

This story will continue throughout the day and into tomorrow, and DCI will be bringing updates as they happen. You can join in the debate on Twitter at http://twitter.com/DCItenders