BARRIERS to the planned merger of Europe's two biggest civil aerospace and weapons manufacturers appeared to have grown as MPs launched an inquiry.
The cross-party House of Commons Defence Committee announced it would examine the likely impact of a merger involving BAE Systems – which has two Clyde yards – and EADS, after a request from Scottish Labour's Dunfermline and West Fife MP, Thomas Docherty.
"BAE Systems and EADS operate highly capable and sensitive defence businesses in many countries including the UK, the USA, France, Germany, Spain, Sweden, South Africa, India, Saudi Arabia and Australia," the committee said.
"The merger of two such large defence contractors would have a significant and strategic impact on their relationships with UK, US and European governments. It could also radically alter the defence industrial base in these countries."
The committee said it would take oral evidence from witnesses during October and November and questioning will be focused on the protection of British interests.
The companies have until October 10 to make a formal proposal for a deal, but are expected to seek an extension because of the complex nature of negotiations.
Mr Docherty said: "The proposed merger affects thousands of jobs at BAE and indirect jobs within the supply chain in Scotland.
"Whilst the merger may present new commercial opportunities, we need to understand what the impacts for Scottish jobs may be."
"I am delighted the committee has agreed to my request for an inquiry so that both the companies and Government Ministers can be grilled on the record."
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