At first glance, the proposed merger between EADS and BAE should not pose problems for competition regulators on either side of the Atlantic, from a defense perspective. There is very little overlap between the businesses. “It’s a great strategic fit,” one EADS official told AIN. However, that may not stop companies such as Finmeccanica or Thales from raising questions about the consolidation of first-tier defense contractors in Europe.
European Union defence procurement
MBDA is stepping up efforts to consolidate Europe’s missile industry, on the back of last November’s Anglo-French Defence Declaration. This pact nominated the company–already a four-nation European industrial combine owned by BAE Systems (37.5 percent), EADS (37.5 percent) and Finmeccanica (25 percent)–as “a test case” for further integration, according to CEO Antoine Bouvier.