Ian King, Chief Executive of BAE Systems, said he was "obviously disappointed" but insisted the business remained robust. He said:
We are obviously disappointed that we were unable to reach an acceptable agreement with our various government stakeholders.
We believe the merger presented a unique opportunity for BAE Systems and EADS to combine two world class and complementary businesses to create a world leading aerospace, defence and security group.
However, our business remains strong and financially robust....We remain committed to delivering total shareholder value and look to the future with confidence.