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BAE in talks over merger

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.

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