U.K. Could Oppose EADS Deal with BAE

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By Douglas A. McIntyre Updated Published

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Senior members of the U.K. government have told the Sunday Telegraph that the EADS “merger” with BAE could be challenged in Parliament. The deal is already controversial because it might create a new monopoly in parts of the defence and aerospace industries due to BAE’s position in defence and EADS’s in aircraft design and manufacture . That fact could also cause opposition with the U.S. government, which may want to bolster the positions of American companies which include Northrup Grumman (NYSE: NOC), Lockheed Martin (NYSE: LMT) and Boeing (NYSE: BA).

The Telegraph:

BAE has been given a list of “red line” issues focusing on UK defence contracts. The fact that such a list exists will increase concerns that the deal could hit insurmountable political hurdles and not be completed.

And,

there are also concerns that 10,000 jobs connected to the EADS Airbus operations in Bristol and north Wales could be put at risk by the merger as the new headquarters of the defence giant is likely to be in France and the new chief executive is set to be Tom Enders of EADS

National interests appear to be a powerful incentive to block the deal both in the case of the U.K and U.S.

Douglas A. McIntyre

Contact [email protected] for any questions or corrections.

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About the Author Douglas A. McIntyre →

Douglas A. McIntyre is the co-founder, chief executive officer and editor in chief of 24/7 Wall St. and 24/7 Tempo. He has held these jobs since 2006.

McIntyre has written thousands of articles for 24/7 Wall St. He is an expert on corporate finance, the automotive industry, media companies and international finance. He has edited articles on national demographics, sports, personal income and travel.

His work has been quoted or mentioned in The New York Times, The Wall Street Journal, Los Angeles Times, The Washington Post, NBC News, Time, The New Yorker, HuffPost USA Today, Business Insider, Yahoo, AOL, MarketWatch, The Atlantic, Bloomberg, New York Post, Chicago Tribune, Forbes, The Guardian and many other major publications. McIntyre has been a guest on CNBC, the BBC and television and radio stations across the country.

A magna cum laude graduate of Harvard College, McIntyre also was president of The Harvard Advocate. Founded in 1866, the Advocate is the oldest college publication in the United States.

TheStreet.com, Comps.com and Edgar Online are some of the public companies for which McIntyre served on the board of directors. He was a Vicinity Corporation board member when the company was sold to Microsoft in 2002. He served on the audit committees of some of these companies.

McIntyre has been the CEO of FutureSource, a provider of trading terminals and news to commodities and futures traders. He was president of Switchboard, the online phone directory company. He served as chairman and CEO of On2 Technologies, the video compression company that provided video compression software for Adobe’s Flash. Google bought On2 in 2009.

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