In theory, the proposed merger between BAE Systems and EADS, the European aviation manufacturer, makes sound commercial sense.
In theory, the proposed merger between BAE Systems and EADS, the European aviation manufacturer, makes sound commercial sense.
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In reality, the deal would require such a delicate balancing act between competing interests that, without cast-iron agreements over governance, it has the potential for disaster.
The chief advantage of the £28 billion pound deal is economic. Combining the defence expertise of BAE with the world's largest civilian aircraft manufacturer would create economies of scale that would provide a competitive edge at a time when defence contracts are shrinking both across Europe and in the US. Both businesses would also be bolstered by the tendency of the demand cycles for civilian and military aviation to balance one another.
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BAE Systems deal cannot be rushed
In theory, the proposed merger between BAE Systems and EADS, the European aviation manufacturer, makes sound commercial sense.
In reality, the deal would require such a delicate balancing act between competing interests that, without cast-iron agreements over governance, it has the potential for disaster.
The chief advantage of the £28 billion pound deal is economic. Combining the defence expertise of BAE with the world's largest civilian aircraft manufacturer would create economies of scale that would provide a competitive edge at a time when defence contracts are shrinking both across Europe and in the US. Both businesses would also be bolstered by the tendency of the demand cycles for civilian and military aviation to balance one another.
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We moderate all comments on HeraldScotland on either a pre-moderated or post-moderated basis. If you're a relatively new user then your comments will be reviewed before publication and if we know you well then your comments will be subject to moderation only if other users or the moderators believe you've broken the rules, which are available here.
Moderation is undertaken full-time 9am-6pm on weekdays, and on a part-time basis outwith those hours. Please be patient if your posts are not approved instantly.
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