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Germany wants more time to hash out defense merger
The German defense minister said more time was needed to iron out the details of a proposed merger between European companies BAE Systems and EADS, suggesting discussions would push past a British Oct. 10 deadline.
After speaking with his French and British counterparts Thursday, German Defense Minister Thomas de Maiziere told reporters that the October deadline might need to be extended, Reuters reported.
British merger rules give the two companies until Oct. 10 to finalize details of the deal, which is complicated by the involvement of the governments of Germany and France in EADS and Britain in BAE.
“Perhaps we need more time. It depends on the answers for our questions, and so I think we need more time,” de Maiziere said Thursday, according to Reuters.
Some German lawmakers on Wednesday raised questions about the 60-40 EADS-BAE ownership ratio under the proposed deal, suggesting it should be weighted heavier toward EADS.
EADS CEO Tom Enders met German lawmakers on Wednesday to try and address their concerns.
There are also potential landmines in the United States over the deal, as the two companies’ U.S. security agreements would have to be addressed.
But the first hurdle for the deal is the European governments. De Maiziere said there have been “constructive” talks between the three countries.
“There are constructive discussions of course among France, Germany and the U.K. We are friends, so we will see. There is no result and the situation is open,” he said.
If the $45-billion BAE-EADS merger goes through, it would create the world's largest defense and aerospace company.
