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BAE merger deal called off

Major defence firms BAE and EADS are blaming politicians for the collapse of their £25bn merger deal.

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Minister denies 'discord' between governments scuppered deal

A minister denied today that "discord" between the UK, France and Germany was behind the collapse of a £28 billion merger of defence company BAE Systems and rival EADS.

Business minister Lord Marland insisted the Government had "very positive" relationships with France and Germany and that had not influenced the outcome.

The two companies will remain as independent companies each with a significant presence in the UK. The Government was clear that the merger would only ever work if it met the interests of all the parties involved.

– Lord Marland

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