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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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Why the BAE and EADS merger was touted

  • With 220,000 staff worldwide - including 52,000 in the UK - and combined sales of £60 billion a merger would have created a new market leader bigger than Boeing in size.
  • The merger would have combined BAE's defence expertise - including lucrative UK and US contracts - with Airbus parent EADS's leading position in the commercial aircraft and aerospace sector.
  • Unions also supported the deal believing it would have created a stronger company to guarantee long term jobs.
  • There were also hopes the merger would mean Airbus UK - which supports 140,000 British jobs - would remain on these shores.

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