Govt threatens BAE deal veto
The Government is prepared to veto the proposed merger between BAE and EADS if the French and German governments’ shares in the company are not reduced, the Defence Secretary has said.
Philip Hammond told the World This Weekend the Government had certain “red lines” that would need to be satisfied before sanctioning the deal.
“We have made very clear that we do have red lines around the BAE-EADS merger, and that if they can’t be satisfied then we will use our special share to veto the deal. But it’s not, I think, necessary to have no French or German government interest in the company; it is necessary to reduce that stake below the level at which it can control or direct the way the company acts.”
George Osborne explained earlier on the Murnaghan show that the Government’s concerns were centred firstly on the national security implications of such a merger, and secondly the impact on British jobs and investment.