Defence Secretary Philip Hammond said a "number of things" stopped the merger deal between BAE Systems and EADS.
Mr Hammond added that despite the deal falling through, the British defence company still had a "great future".
You can see the interview with Mr Hammond on the ITV News website.
BAE Systems stepped up its efforts to reassure staff, customers and investors today in the wake of its abandoned attempt to merge with EADS.
Plans to create a European aerospace and defence giant were in tatters tonight after German opposition scuppered the £28 billion deal.
Defence Secretary says proposed merger of BAE and EADS collapsed because it was "too difficult" to reconcile differences of the governments.