European aerospace firms EADS and BAE Systems called off their planned $45 billion merger Oct. 10, just one month after Leiden, Netherlands-based EADS announced its intention to create the world’s largest defense contractor by adding London-based BAE to a portfolio that already includes Airbus, Astrium and others.
In a joint statement, EADS and BAE attributed their decision to terminate merger talks to the political opposition the cross-border deal faced at home and abroad.
“We are obviously disappointed we were unable to reach an acceptable agreement with our various government stakeholders,” BAE Systems CEO Ian King said in the statement. “We believe the merger presented a unique opportunity for BAE Systems and EADS to combine two world class and complementary businesses to create a world leading aerospace, defence and security group.”
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