BAe Merger

  morddwyd 21:53 13 Sep 2012

Anyone else having misgivings about the possible merger of BAe and EADS?

I know size is now everything to compete on world markets, but although it's a merger it surely cannot be good for British industry?

EADS is the bigger partner and BAe could be inexorably subsumed.

The French have an enviable record in looking after French jobs.

  natdoor 15:50 08 Oct 2012

I believe that the UK government wishes the other two to reduce their holdings to 9% each. The golden share would no longer exist after the merger. With the combined government holdings and other continental holdings, the merged company can do as it likes, just as Kraft did with Cadburys despite the assurances given only three weeks earlier.

Sadly I feel that there is too much evidence that the French cannot be trusted and the merger is far too risky from the UK standpoint.

  morddwyd 20:11 08 Oct 2012

"there is too much evidence that the French cannot be trusted "

Totally untrue and unjustified.

You can rely implicitly, without any qualms, on the French to do what is right for France and the French.

Wish we had a government like that (and I don't just mean the present one, either!).

  Forum Editor 14:22 10 Oct 2012


I can see that you're determined not to give up on this, so I will. I've lost the energy to continue.

  Strawballs 14:30 10 Oct 2012

Why give up on a fact!!

  Forum Editor 14:33 10 Oct 2012

It has been announced this morning that the two companies have decided to cancel their plans for a merger.

The main point of disagreement appears to have been the insistence by our government and the heads of the two companies involved that directors appointed by the French, German and UK governments should not sit on the top board of the merged group.

Our government had two main concerns - that control of the UK business would end up in Paris or Berlin, and that British jobs might be threatened. The other important factor was that the US government was worried about undue French and German influence over the merged company. BAe wants more contracts from the Pentagon.

It's likely that these two companies will continue to talk behind the scenes, to see if they can arrive at a workable proposal for some time in the future.

  johndrew 15:10 10 Oct 2012

It's likely that these two companies will continue to talk behind the scenes, to see if they can arrive at a workable proposal for some time in the future.

Personally, I hope that all future negotiations, whether internal or government, fail as I believe any such merger would be detrimental to both our sales, employment and economy - not to mention the independence of our national defence.

There are some functions that require independence from European interference and control. Allowing any level of outside control in such an important element of our sovereignty would, I believe, cause our political and military independence to be breached.

  Forum Editor 15:39 10 Oct 2012


To be technically correct, their was no question of any outside control of an element of our sovereignty - neither of the two companies is nationalised.

There was certainly a concern about our national security however, and I think that's what you meant. The political aspects of the case relate to our worry about governments appointing directors to the main board, and that was certainly something that our government wanted to avoid.

Our ability to manage our own national defence policies and contracts in the strictest of confidence is obviously of paramount importance.

  oresome 16:22 10 Oct 2012

We now need a change of management at BAe.

Someone who can develop a strategy for the company on it's own in a world where many of it's customers are spending less on the products it manufactures.

Much shareholders money has been wasted on a proposed merger which was always going to be beset with political difficulties and has laid bare the weak business plans of the company.

  johndrew 10:10 11 Oct 2012


Agreed. There should also be a clause in all senior executive contracts forbidding any financial gain from such a merger in the future - it may clarify their view of their actions.

  natdoor 09:24 09 Oct 2012

Nothing wrong with that if done in a fair and honourable way.

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