Arab Today, arab today failed eadsbae merger a dream lost in political translation
Last Updated : GMT 20:42:53
Arab Today, arab today
Arab Today, arab today

Failed EADS-BAE merger: a dream lost in political translation

Arab Today, arab today

Arab Today, arab today Failed EADS-BAE merger: a dream lost in political translation

Paris - AFP

The merger was meant to be unprecedented but the attempts to tie up European aerospace group EADS and Britain's BAE Systems last week to create the biggest aerospace and defence group in the world got mired in the quicksand of politics and eventually failed. For those from the British arms-maker and the parent company of the Airbus passenger jet, who for months worked on the mega-merger, the dream stopped short Wednesday when both groups scuppered further talks over irreconcilable differences between the leaders of Britain, France and Germany. London holds a golden share in BAE Systems and wants to keep the defence company's special relationship with the US Pentagon by limiting government funds in the new giant's capital. Paris, on the other hand, holds 15 percent of EADS shares which would have shrunk to nine percent in the merger. And Germany already had plans to buy 7.5 percent of the stocks held by carmaker Daimler and insisted on a parity of power with France. A compromise solution between France and Britain had been found but in the end Berlin's fears that German plants which contribute to the Eurofighter aircraft would have been sidelined by BAE Systems. EADS executives point out that Germany never explained why it dropped the blockbuster tie-up. During talks, they said,  Germany called for the new company to be headquartered in Germany when EADS chief executive Tom Enders had already decided on Toulouse, southern France. "I’m ready to admit that we never expected to face such opposition against the deal, in particular not in Berlin," Enders said in a letter to employees. As soon as plans to create the biggest aerospace group in the world -- drawn up in spring and with an agreement in principle by the three governments involved in July -- were revealed by the press in mid-September, comments coming from Berlin were anything but positive. "It is questionable whether the proposed structure can actually be agreed to," DPA news agency said citing German government sources. In spite of these "serious reservations", France said it would coordinate its position with Germany but in fact failed to overcome German misgivings, said a source close to the talks. Peter Hintze, an old friend of Enders' who is government coordinator of German aerospace policy, campaigned against the merger, raising fears of job losses as state and national elections loom in Germany. EADS on the other hand explained that a merger with BAE Systems would open up new markets. An analyst in Berlin meanwhile pointed to the little interest shown by Chancellor Angela Merkel. "We have a policy for the auto industry but not for the defence industry, the government doesn't care," said Christian Moelling of Germany's Foundation for Science and Politics think tank. Whatever the reasons for the failed tie-up, Germany must live with the industrial and diplomatic repercussions. And German media fear that EADS will lose incentive to a promise to keep jobs in the military sector. Since Berlin seems to want enter EADS' capital, "we will have to rediscuss the shareholders' agreement", said a French government source. "We don't mind reopening talks but if they expect anything we will have to see what's in it for us." For Enders, the merger would also have been an opportunity to do away with the shareholders' agreement which  hampers company strategy. At EADS some even wonder whether matters could have turned out differently had Enders not had a sports accident in late August, keeping him from pleading his cause with Merkel during her trip to China.  

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today failed eadsbae merger a dream lost in political translation Arab Today, arab today failed eadsbae merger a dream lost in political translation

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today failed eadsbae merger a dream lost in political translation Arab Today, arab today failed eadsbae merger a dream lost in political translation

 



Arab Today, arab today
Arab Today, arab today Designer Aql Faqih aspires to innovation

GMT 18:41 2017 Friday ,20 October

Designer Aql Faqih aspires to innovation
Arab Today, arab today Italy regions back 'big bang' autonomy

GMT 07:10 2017 Monday ,23 October

Italy regions back 'big bang' autonomy
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Trump: End of Daesh is in sight

GMT 20:29 2017 Monday ,23 October

Trump: End of Daesh is in sight
Arab Today, arab today Maltese demand justice for murdered

GMT 06:08 2017 Monday ,23 October

Maltese demand justice for murdered
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today World's deepest lake in peril

GMT 15:54 2017 Friday ,20 October

World's deepest lake in peril
Arab Today, arab today Ex-French minister Dati wants tough action

GMT 10:54 2017 Thursday ,19 October

Ex-French minister Dati wants tough action
Arab Today, arab today Lost Australia diver swam miles

GMT 19:09 2017 Monday ,23 October

Lost Australia diver swam miles
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Tesla to build wholly-owned plant

GMT 07:55 2017 Monday ,23 October

Tesla to build wholly-owned plant
Arab Today, arab today EU raids automaker BMW

GMT 11:06 2017 Saturday ,21 October

EU raids automaker BMW
Arab Today, arab today Rogina happy for reactions to “The Flood”

GMT 09:30 2017 Friday ,20 October

Rogina happy for reactions to “The Flood”
Arab Today, arab today Delhi braces for pollution 'airpocalypse'

GMT 16:07 2017 Friday ,20 October

Delhi braces for pollution 'airpocalypse'

GMT 08:15 2017 Thursday ,19 October

Actress Mona Zaki praises husband’s role

GMT 18:15 2017 Monday ,16 October

British actress becomes fifth woman

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam

GMT 19:09 2017 Thursday ,19 October

Massacre fears spark race

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 06:07 2017 Sunday ,22 October

15,000 Under Fives Die

GMT 12:54 2017 Saturday ,21 October

Malaysia Airlines picks new CEO

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 20:46 2017 Thursday ,19 October

Qualcomm files lawsuits in China to ban iPhones

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday