BAE, EADS talks may spur more mergers |
| Reuters - Sep 12, 2012 |
In the biggest shake-up in Europe's aerospace and defense sector in more than a decade, Britain's BAE Systems (BAES.L) and Airbus-owner EADS (EAD.PA) said they are in advanced talks to create an industry giant that would overtake rival Boeing (BA.N) in sales and contend with defense cutbacks in Europe and the United States.
The proposed deal, the biggest since a 2000 pan-European merger created EADS under joint French and German control, could kick-start a wave of consolidation in the sector, as companies vie for shrinking defense budgets.
Linda Hudson, chief executive of the U.S. arm of BAE Systems, said the deal made sense given the downturn in U.S. and European defense spending, but would also insulate the combined company against the inevitable cycles of the aerospace sector.
"It's a win-win proposition for both companies in this environment," Hudson told Reuters after a speech at Johns Hopkins University in Washington on Wednesday evening.
Read Full Article from Reuters
- Posted: 2012-09-12 23:15:35
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