BAE Systems, EADS in Merger Talks

Stephen Pope

Thursday, September 13, 2012 at 07:46 PM ET

Verified

Key Takeaways:

BAE Systems and Airbus-owner EADS are in advanced merger talks to create a new aerospace and defense industry behemoth.
The proposed deal aims to form a company that would surpass rival Boeing in global sales and have sweeping implications for the defense industry.
If successful, the merger would combine a wide range of products including commercial jets, military transports, helicopters, and fighter jets, though it faces potential scrutiny from European antitrust regulators.

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In what would be a blockbuster shakeup of Europe’s aerospace industry, Britain’s BAE Systems and Airbus-owner EADS announced on Wednesday that they have entered advanced merger talks to create an industry behemoth that would overtake rival Boeing in global sales.

The proposed deal, the biggest in Europe since the 2000 merger that created EADS under joint French and German control, would have sweeping implications for the defense industry, where both companies are major players.