BAE Systems and EADS: Why the deal collapsed

“If I wasn’t a born optimist, I would not have started this project.” So declared Tom Enders earlier this week, in a letter to employees marking his 100th day as EADS chief executive.

Only now has it become clear just how optimistic Enders was being.

Enders the optimist tried to achieve in one month what his predecessors had failed to do in the previous 12 years – resolve the political tensions at the heart of EADS once and for all through a merger with BAE Systems.

He even convinced BAE Systems that he could achieve this. However, even for an optimist, it proved impossible

Enders saw a merger with BAE as a means of facilitating the end of France and Germany’s grasp on EADS.

BAE Systems faces uncertain future after collapse of EADS merger talks

The proposed £30bn merger between BAE Systems and EADS may have collapsed but uncertainty still reigns for Britain’s defence giant.

The proposed £30bn merger between BAE Systems and EADS may have collapsed but uncertainty still reigns for Britain’s defence giant.

The companies’ decision to abandon talks has left many fearful that BAE is now more vulnerable to a takeover bid or a break-up.

The company claimed yesterday that it would carry on as it was before, building up its existing businesses and expanding in its international markets. But that no longer seems to be a luxury the company can afford.

BAE Systems, EADS in merger talks to create $100bn turnover business

EADS, the Airbus and Eurocopter parent, is in talks with defence manufacturer BAE Systems over a possible merger that would create the world's largest aerospace and defence company with an annual turnover of almost $100 billion.

In a joint statement released to the London Stock Exchange, BAE confirmed that discussions between the two manufacturers were under way.

If the merger goes ahead, the firms' combined annual turnover would be $95.8 billion, based on their 2011 figures, with around $74 billion generated by aerospace operations. This would dwarf EADS's chief rival Boeing, which recorded turnover of $68.7 billion in 2011.

The merger would give EADS a long-sought foothold in the US defence market. Since beginning to shift the centre of gravity of its business stateside in the 2000s, BAE has become one of the Pentagon’s biggest contractors.