DEFENCE company BAE Systems, which operates the Govan and Scotstoun shipyards in Glasgow, is in talks over a potential merger.
BAE is discussing a tie-up with rival European Aeronautic, Defence and Space (EADS).
If the move goes ahead, it would create the world's biggest aerospace and defence company, with combined sales of £60 billion and around 220,000 staff. The merged group would employ around 48,000 in the UK alone.
BAE, which employs around 3000 shipyard workers on the Clyde, said it was too early to confirm whether there would be any job losses, but it stressed there was very little overlap between the activities of the two businesses.
Both groups have a long history of collaboration and are partners in joint ventures including the Eurofighter project and the MBDA missile systems firm.
"The potential combination would create a world-class international aerospace, defence and security group with substantial centres of manufacturing and technology excellence in France, Germany, Spain, the UK and the US," the two groups said in a joint statement.
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